Key facts
- President Donald Trump announced trade and investment deals with Gulf states will replace a proposed 20% fee for ships using the Strait of Hormuz.
- The Strait of Hormuz is open to all ship traffic except for Iran.
- A full blockade is being implemented on ships coming to and from Iranian ports or carrying Iranian cargo.
- Trump credited the U.S. military for securing the Strait of Hormuz.
U.S. President Donald Trump announced on Tuesday that trade and investment deals with Gulf states will replace a previously proposed 20% fee for ships transiting the Strait of Hormuz. Trump stated on Truth Social that these "MASSIVE" investments would be beneficial for both the United States and the Gulf nations, leading to significant job creation in the U.S.
Trump also declared that the Strait of Hormuz is now open to all ship traffic, with the exception of Iran, attributing the security of the vital waterway to the U.S. military. He further announced a "FULL Blockade" on Iranian shipping, targeting vessels coming to and from Iranian ports or carrying Iranian cargo.
This announcement follows a day after Trump had proposed the 20% reimbursement fee, a move that had drawn strong reactions and raised concerns about global trade and energy supplies. The shift to investment deals aims to secure economic benefits for the U.S. while maintaining open passage through the strategic strait.