Washington: US President Donald Trump has announced the withdrawal of his proposal to impose a 20 percent transit fee on ships passing through the Strait of Hormuz.
Speaking to reporters at the White House during a meeting with Iraqi Prime Minister Ali Al-Zaidi, Trump said the strategic waterway remains open to all countries except Iran.
He said the proposed 20 percent charge on vessels using the Strait of Hormuz has been dropped and will instead be replaced with trade and investment agreements. According to Trump, Gulf countries will increase investment in the United States under the new arrangement.
The US president said the decision followed constructive discussions with leaders from the Middle East. He added that the United States is regaining strength and reiterated that Iran would never be allowed to acquire a nuclear weapon.
Trump also announced the reimposition of a naval blockade against Iran.
Earlier, the US president had stated that Iranian vessels would be barred from transiting the Strait of Hormuz, while commercial and cargo ships from other countries would continue to enjoy access to the vital maritime route.
In a post on his social media platform, Truth Social, Trump said the Strait of Hormuz is open and will remain open, with or without Iran. He added that the United States would continue to ensure the security of maritime navigation in the region and fulfil its responsibility to protect one of the world’s most important shipping lanes.
In the same post, Trump had proposed collecting a 20 percent fee on all cargo passing through the Strait of Hormuz, saying the revenue would be used to strengthen maritime security and safeguard the uninterrupted flow of global trade.
