Washington: US President Donald Trump has retracted his proposal to impose a 20 percent fee on cargo passing through the Strait of Hormuz, opting instead for potential trade and investment agreements with Persian Gulf states, while keeping a blockade on Iranian shipping in place.
According to Radio Free Europe Radio Liberty, Trump's decision follows discussions with Middle East leaders and replaces the fee with anticipated substantial investments from Gulf nations into the United States. However, Trump did not disclose specific commitments from these governments, merely noting that the investments would be "MASSIVE."
The policy shift occurs as US military forces continue to target southern Iran and enforce a blockade. Explosions were reported throughout Iran on July 14, with US military actions striking multiple locations. Iranian state media indicated that five explosions were heard near Bandar Abbas, a key port city close to the Strait of Hormuz, amid hostilities between the US and Iran. The city of Bushehr, which hosts Iran's only nuclear power plant, was also targeted, alongside several islands off Iran's southern coast.
Regional tensions have escalated, with Jordan and Bahrain intercepting Iranian ballistic missiles, and the UAE reporting attacks on vessels in the Strait of Hormuz, resulting in one death and multiple injuries. The US Central Command (CENTCOM) announced the reinstatement of a naval blockade against Iranian maritime traffic.
In a statement, CENTCOM emphasized its commitment to maintaining traffic flow for non-violating vessels in regional waters. The military actions signal a breakdown in recent peace talks, with Trump notifying Congress of renewed hostilities, granting him a 60-day window for military operations without legislative approval.
Amid the conflict, Trump expressed optimism for a potential peace deal, despite recent setbacks. Earlier comments suggested the possibility of US control over the strategic waterway, which is pivotal for global energy transit.
The Iranian Revolutionary Guards Corps criticized US military involvement, asserting that the only path to secure shipping routes was through ending US intervention. Iran's military leadership warned that nations cooperating with the US would bear responsibility for regional instability.
Diplomatic efforts continue, with Iranian and Omani officials discussing safe navigation mechanisms. Despite the absence of US participation, proposals were exchanged, but Iran deferred further negotiations pending internal consensus.
Tensions remain high, with Iran's Supreme Leader Mojtaba Khamenei pledging retaliation for his father's assassination earlier this year. Trump's warnings of severe military responses to any assassination attempts further underscore the precarious situation.