President Donald Trump said Tuesday that he is replacing a proposed U.S. reimbursement fee on Gulf shipping with major trade and investment agreements from Middle Eastern allies, arguing the deals will create millions of American jobs while keeping pressure on Iran.
In a Truth Social post, Trump said he reached the decision after what he described as "highly productive conversations" with Gulf leaders.
"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 wrote.
The president said the investments would be "MASSIVE," bringing factories, manufacturing plants, and equipment into the United States while creating "additional millions of High Paying AMERICAN Jobs."
Trump's announcement marked a shift from his Monday proposal to charge a 20% reimbursement fee on commercial shipping using the Strait of Hormuz after the U.S. military reimposed a blockade targeting Iran.
The president said the United States will continue enforcing a full blockade on ships traveling to or from Iranian ports or carrying Iranian cargo, while allowing all other commercial traffic to move freely through the strategic waterway.
Trump credited the U.S. military with reopening one of the world's most important shipping lanes after weeks of conflict with Iran.
"Oil is flowing like never before, thanks to the awesome Power of the United States Military," Trump wrote, praising War Secretary Pete Hegseth, Joint Chiefs Chairman Gen. Dan Caine and U.S. Central Command Commander Adm. Brad Cooper.
He declared the Strait of Hormuz "open to ALL Ship traffic except for Iran," blaming Tehran's leadership for choosing "the path of TOTAL DESTRUCTION."
Trump also reiterated that the administration's military campaign and economic pressure would ensure "IRAN WILL NEVER HAVE A NUCLEAR WEAPON."
The Associated Press reported Monday that Trump had announced the reinstatement of the Iranian blockade after renewed fighting and attacks on commercial shipping threatened negotiations aimed at ending the conflict.
The proposal to impose a 20% fee on eligible cargo was intended to offset the cost of protecting one of the world's busiest energy corridors.
The AP also reported that roughly one-fifth of the world's oil and natural gas transited the Strait of Hormuz before the conflict intensified.
Iran has continued to assert authority over the waterway, while the United States has maintained that freedom of navigation under international law must be preserved.