WASHINGTON: US President Donald Trump on Tuesday abandoned plans to impose a 20 percent fee on vessels using the Strait of Hormuz, saying he would instead pursue investment agreements with Gulf countries.
The reversal came hours before the proposed charge was due to take effect at 20:00 GMT, following criticism from the shipping industry and amid continued military escalation between the US and Iran.
Trump had announced the fee on Monday after Iran declared it had closed the strategic waterway, while also ordering a blockade of Iranian shipping. However, in a social media post on Tuesday, he said the strait would remain open to all commercial traffic except Iranian vessels.
The announcement prompted oil prices to trim earlier gains after concerns over potential disruption to one of the world's busiest energy shipping routes had pushed crude higher.
The policy shift came as US forces carried out a third consecutive night of strikes against Iranian targets, raising fresh doubts over whether a memorandum of understanding signed last month could still lead to a lasting end to the conflict.
