President Donald Trump has announced a U-turn on his threat to slap a 20 percent toll on cargo passing through the Strait of Hormuz.
The President said on Tuesday that the US will instead agree ‘massive’ investment deals with the Gulf states.
Trump wrote on Truth Social: ‘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 said on social media.
He said the investments will be significant though it’s unclear if these would be new commitments relative to what Trump announced after a visit last year to the Middle East.
This comes after another round of strikes exchanged with Iran overnight. The US launched strikes earlier in the day, and Iran responded by attacking American allies in the region.
The latest exchange of fire has shattered an interim agreement designed to pause hostilities, reopen a vital global energy waterway and allow time for permanent peace talks.
Instead, renewed fighting has engulfed the region, threatening the global economy and triggering warnings for commercial airlines.
In a stunning twist, President Donald Trump has executed a breathtaking U-turn on his threat to slap a 20% toll on cargo passing through the strategic Strait of Hormuz
Vessels at the Strait of Hormuz, pictured off the shore of Musandam, Oman, July 13
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