President Donald Trump announced Tuesday that he is replacing his proposed 20 percent reimbursement fee on cargo ships transiting the Strait of Hormuz with trade and investment deals involving Gulf states, while maintaining a blockade on ships traveling to or from Iranian ports or carrying Iranian cargo.
“Oil is flowing like never before, thanks to the awesome Power of the United States Military,” Trump wrote Tuesday on Truth Social, crediting Secretary of War Pete Hegseth, Chairman of the Joint Chiefs of Staff Dan Caine, U.S. Central Command Commander Adm. Brad Cooper, and American service members.
Trump said the Strait of Hormuz is “open to ALL Ship traffic except for Iran,” blaming Tehran’s “lying, violent, malicious leadership” for placing the country on a path toward “TOTAL DESTRUCTION.”
“We will therefore have a FULL Blockade, but only on Ships coming to and from Iranian ports, or carrying anything have to do with Iranian cargo,” Trump wrote.
The president then announced that he had replaced the 20 percent fee he proposed Monday to reimburse the United States for protecting international shipping through the waterway.
“Based on highly productive conversations with Middle East leadership, I have decided to replace the 20 percent United States Reimbursement Fee with Trade and Investment Deals that the various Gulf States will be making into the United States,” Trump wrote.
Trump described the planned investments as “MASSIVE” and said they would also be “extraordinarily good” for the Gulf states and their futures.
“As everyone is aware, we have the largest Dollar Investment into the United States, of any Country in History, but these new Investments will make that Number even larger, and we will see Factories, Plants, and Equipment pour into the United States at Historic levels, which will create additional millions of High Paying AMERICAN Jobs!” he wrote.
“America is WINNING again, winning like never before,” Trump continued. “The days of Iran killing hundreds of thousands of people, including 52,000 protestors, are OVER and, most importantly, IRAN WILL NEVER HAVE A NUCLEAR WEAPON!”
Trump’s announcement came after U.S. forces carried out a five-hour mission targeting Iranian coastal defense systems, missile and drone sites, and maritime capabilities to further degrade Iran’s ability to attack commercial shipping. U.S. Central Command (CENTCOM) said the strikes hit military targets across Iran, including Bushehr, Chah Bahar, Jask, Konarak, Abu Musa, and Bandar Abbas. Trump had declared the ceasefire over and said the United States would take over the Strait of Hormuz and become its guardian.
Trump first announced the 20 percent reimbursement fee Monday, declaring that “the Hormuz Strait is OPEN, and will remain OPEN, with or without Iran.” He said the United States was reinstating “THE IRANIAN BLOCKADE,” which would stop only Iran’s ships or customers from entering or leaving, while all other countries would have “fair and open use of the Strait.” Trump said the United States would expect to be reimbursed for protecting international shipping “at the rate of 20 percent on all cargo ships” as “a matter of fairness.” The proposal came after shipping traffic through the waterway fell to its lowest level in two months following Iranian attacks on commercial vessels. Oil prices rose four percent in early trading Monday, while Goldman Sachs warned that renewed escalation could increase the short-term risk of higher prices by further disrupting Gulf exports.
Read the full article here