Trump backs away from fee, says regional countries will instead invest in US in return for transit protection.

United States President Donald Trump has backed away from his claim that Washington would levy a 20 percent transit fee for vessels passing through the Strait of Hormuz.

The reversal on Tuesday came just a day after Trump announced the 20 percent fee as fighting between the US and Iran continued to escalate.

At the time, Trump did not release any further details of the fee, only saying on Truth Social that it would be a “reimbursement” for “any and all costs necessary to do the job of providing safety and security to this very volatile section of the World”. The administration did not say how it would ensure safe passage through the international waterway, which the US does not control.

In the latest statement, Trump said that instead, the fee would be replaced with “Trade and Investment Deals that the various Gulf States will be making with the United States”.

He said the decision came after “highly productive conversations with Middle East leadership”.

Trump further vowed the investments from Gulf countries would be “massive”, without providing further information. Several countries in the region had already announced multibillion-dollar pledges to invest in the US prior to the US and Israel launching their war with Iran on February 28.

While Trump had previously suggested the US could take “control” of the Strait of Hormuz and charge tolls, Monday’s announcement had been the closest sign yet that the rhetoric could be turned into policy.

The Trump administration had previously rejected the notion of Iran charging any fees for transiting ships, with US Secretary of State Marco Rubio saying that doing so in an international waterway 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 US president spoke on Tuesday, hours before a US military blockade of Iran was set to restart. That blockade had been lifted as part of a memorandum of understanding (MoU) signed by both sides in mid June.

The preliminary deal, which also saw an end to fighting between both sides and the opening of the Strait of Hormuz, has been thrown into peril amid the latest bout of attacks.

Iranian media have reported recent attacks in Bushehr, Bandar Abbas, Mahshahr, and Abadan, with explosions reported on Tuesday on Qeshm and Kish islands.

Kuwait, meanwhile, said its armed forces were engaging with a number of aerial targets. Iran has vowed to continue attacks on US assets in the region, with other attacks reported on Bahrain, Jordan and on vessels in the Strait of Hormuz.