Trump backs down on 20% toll, says it will be replaced with 'trade and investment deals' from Gulf states
President Donald Trump backed off from his threat to impose a 20% toll on cargo transiting the Strait of Hormuz on Monday, claiming it would be replaced by future trade and investment deals with Gulf allies.
The announcement comes just a day after Trump initially announced the 20% fee, throwing more uncertainty into the global oil market. U.S. oil was trading up over 3% Tuesday morning, and global oil up over 4%.
Trump wrote on social media that the decision came after "highly productive conversations with Middle East leadership," and would include “massive” investments into the U.S., though he did not offer any specifics on the deals.
“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,” Trump said.
The president also again asserted that the Strait of Hormuz was open to “ALL Ship traffic except for Iran” as the U.S. reimplements the naval blockade on Iranian ships and ports, as the country has continued to strike commercial vessels moving through the strait, claiming it is closed to traffic.
“That is because of their lying, violent, malicious leadership, which is taking them down the path of TOTAL DESTRUCTION,” Trump said of the renewed blockade. “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.”
-ABC News' Nicholas Kerr
