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US, Israel war on Iran
USDiplomacy

Trump scraps Hormuz toll plan but presses ahead with Iran blockade

In latest flip-flop, US president says Gulf investment deals will replace shipping fee, while restoring blockade targeting Iranian trade

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US President Donald Trump in the Oval Office at the White House on Tuesday. Photo: Reuters
Teresa Elena Frontadoin Washington
US President Donald Trump on Tuesday abandoned plans to impose a 20 per cent charge on commercial cargo passing through the Strait of Hormuz, less than a day after unveiling the proposal, while pressing ahead with a naval blockade targeting Iranian trade.

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 per cent 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.

The proposal was widely criticised as difficult to enforce and raised questions over its compatibility with long-standing principles of freedom of navigation.
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