US President Donald Trump on Tuesday announced that the Strait of Hormuz has been reopened for global shipping under US military protection, while imposing what he called a "full blockade" on vessels travelling to Iranian ports or carrying Iranian cargo. He also said he had dropped his proposed 20 per cent reimbursement fee for ships using the strategic waterway in favour of new trade and investment deals with Gulf countries.
In a post on Truth Social, Trump credited the US military with restoring maritime traffic through one of the world's busiest energy corridors.
"Oil is flowing like never before, thanks to the awesome Power of the United States Military," he wrote.
Trump praised US Defense Secretary Pete Hegseth, Chairman of the Joint Chiefs of Staff Gen. Dan Caine and Commander of US Central Command Admiral Brad Cooper for securing the key shipping route.
"Because of them, and all members of the Most Powerful Military anywhere in the World, BY FAR, the Strait of Hormuz is open to ALL Ship traffic except for Iran," Trump said.
Announcing fresh restrictions on Iran, the US President said, "We will therefore have a FULL Blockade, but only on ships coming to and from Iranian ports, or carrying anything to do with Iranian cargo."
Trump also abandoned his earlier proposal to impose a 20 per cent United States reimbursement fee on cargo ships using the Strait of Hormuz. He said the decision came after "highly productive conversations" with Middle East leaders.
"Based on highly productive conversations with Middle East leadership, I have decided to replace the 20 per cent United States Reimbursement Fee with Trade and Investment Deals that the various Gulf States will be making into the United States," he wrote.
According to Trump, the investments from Gulf countries will be "massive" and will lead to more factories, plants and equipment being set up in the US, creating millions of high-paying American jobs.
The Strait of Hormuz is one of the world's most important energy corridors, carrying a significant share of global oil shipments. Trump's decision marks a shift from charging ships a direct fee for using the waterway to securing large-scale trade and investment commitments from Gulf nations instead.
The US President also launched a fresh attack on Iran's leadership, accusing it of pursuing a destructive path. Reiterating his administration's stance on Tehran's nuclear ambitions, Trump said Iran's leadership was taking the country down the path of "total destruction" and declared that "Iran will never have a nuclear weapon."
