US President Donald Trump has reversed his claim that Washington would impose a 20 percent transit fee on vessels passing through the Strait of Hormuz. The reversal came just a day after Trump announced the fee amid escalating US-Iran tensions.

In his initial Truth Social post, Trump described the fee as a “reimbursement” for costs of providing security in the “very volatile” region. However, the administration provided no details on how it would ensure safe passage through the international waterway, which the US does not control.

In a new statement, Trump said the fee would be replaced with “Trade and Investment Deals” with Gulf states, following “highly productive conversations with Middle East leadership.” He vowed the investments would be “massive,” without elaboration.

Several Gulf countries had already pledged billions in US investments before the US and Israel launched their war with Iran on February 28. Trump had previously suggested the US could “control” the Strait and charge tolls, but Monday’s announcement was the closest to policy.

US Secretary of State Marco Rubio had rejected the notion of Iran charging transit fees, saying it would undermine international law. Trump appeared to return to that position on Tuesday, telling reporters he does not “like the concept of a fee.”

The reversal came hours before a US military blockade of Iran was set to restart. The blockade had been lifted under a June memorandum of understanding, which also ended fighting and opened the Strait. The deal is now imperiled by recent attacks.

Iranian media reported explosions in Bushehr, Bandar Abbas, Mahshahr, and Abadan, as well as on Qeshm and Kish islands. Kuwait said its forces were engaging aerial targets. Iran has vowed continued attacks on US assets in the region.

Source: www.aljazeera.com