Trump said the proposed fee would be replaced by trade and investment agreements with Gulf states following discussions with regional leaders.
“Based on highly productive conversations with Middle East leadership, I have decided to replace the 20% United States Reimbursement Fee with Trade and Investment Deals that the various Gulf States will be making into the United States,” Trump wrote on social media.
He said the investments would be “MASSIVE” and beneficial to the countries involved, but did not identify the participating governments, specify the value of the commitments or say whether they represented new pledges.
The reversal came after Trump declared on Monday that Washington would charge eligible vessels a fee equivalent to 20 per cent of the value of their cargo to help cover the cost of securing the strategic waterway.
Trump had described the United States as the “guardian” of the Strait of Hormuz, through which about a fifth of globally traded oil and natural gas passed before the conflict.
