Donald Trump backs away from fee, says regional countries will instead invest in US in return for transit protection.

Trump says Iranian ships and those trading with Iran will be barred, while other commercial traffic will pay a 20% transit fee.

President Donald Trump said the 20% fee on cargo was necessary to "do the job of providing safety and security" to the region.

President Donald Trump on Tuesday reversed course on his earlier proposal for the US to levy a 20% fee on all cargo flowing through the Strait of Hormuz