Donald Trump has abandoned plans to impose a 20 per cent levy on cargo passing through the Strait of Hormuz as the US military fires another round of strikes against Iran and a blockade on Iranian shipping comes into effect.
Speaking at the White House, the US President said the decision to reverse the levy followed calls with regional leaders, adding he doesn’t “like the concept of a fee.”
He later said the charge would be replaced by “Trade and Investment Deals that the various Gulf States will be making with the United States” after “highly productive conversations with Middle East leadership.”
Mr Trump also said Gulf investment in the United States would be “massive” but provided no further details.
The reversal comes a day after Mr Trump announced the proposed fee, which he had described on truth Social as a “reimbursement” for “any and all costs necessary to do the job of providing safety and security to this very volatile section of the world”.
The administration did not explain how it would guarantee safe passage through the waterway, which the US does not control.
Meanwhile, a 6am AEST deadline set by Mr Trump and reaffirmed by US Central Command (CENTCOM) has now passed, meaning the blockade of Iran ships leaving or bound for Iranian ports can be boarded or seized by US military forces.
CENTCOM reiterated the enforcement of the blockade in a post to social media.
“There are currently more than 20 US Navy warships and hundreds of military aircraft operating across the Middle East,” it said on X.
“American forces remain vigilant, lethal, and ready.”
The conflict continued to escalate overnight, with Iran’s Islamic Revolutionary Guard Corps striking tankers transiting the Strait of Hormuz, killing at least two crew members.
Iranian state media also reported multiple explosions near port cities, while Tehran said it had launched attacks on US sites in Bahrain and Jordan.
US Central Command later announced further strikes on Iranian targets to “degrade” its military capabilities.
“To continue degrading Iranian capabilities used to attack commercial shipping in the Strait of Hormuz,” it wrote on X.
“The strikes are taking place as American forces prepare to resume the naval blockade against Iranian ports and coastal areas.”
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