Trump ditches plan to charge shipping fees in Strait of Hormuz

US President Donald Trump has reneged on his plan to charge a 20 per cent fee on shipping in the Strait of Hormuz, a day after saying he would introduce it.

After weeks of insisting the strait must be toll-free, Mr Trump said on Monday, local time, he would impose charges "at the rate of 20% of all cargo shipped" in return for providing security.

But on Tuesday evening he changed plans, declaring the Strait of Hormuz open to all shipping traffic except for Iran, which would be subjected to a "full blockade".

"I don't think anybody should be able to charge a fee," Mr Trump told reporters.

"I don't like the concept of a fee, but at the same time, it's not fair that we're protecting this Strait for the entire world."

Earlier on Truth Social, Mr Trump said instead of a fee, Gulf countries would invest in the US.

"Based on highly productive conversations with Middle East leadership, I have decided to replace the 20% United States Reimbursement Fee with Trade and Investment Deals that the various Gulf States will be making into the United States," he said in a post on Truth Social.

Mr Trump did not mention any specific commitments by Gulf states, saying: "Investments will be MASSIVE but, at the same time, extraordinarily good for them, and their future."

Fresh strikes launched across region

It comes as the US launched a fresh wave of strikes on Iran for the third night, prompting Tehran to respond with strikes on targets in countries around the region.

Projectiles hit Iran's Gulf island of Qeshm near the Strait of Hormuz on Tuesday, according to Iran's state media, who blamed the US.

Meanwhile, a US projectile exploded near a water and electricity facility on Iran's Kish Island, the country's semi-official Tasnim news agency said.

The US military earlier confirmed it had hit targets across Iran, including in the port cities of Bushehr and Bandar Abbas, to "degrade Iran's ability to attack commercial shipping".

Iran retaliated by hitting two ships in the Strait of Hormuz, killing a crew member, according to the United Arab Emirates.

In the early evening local time, Kuwait said its armed forces were engaging with "hostile" aerial targets, and the state news agency there said sirens had sounded in the country.

Iran also attacked a US Army base in Jordan with ballistic missiles while Bahrain, which hosts a US naval base, said it had fended off an Iranian aerial attack.

UN condemns new fighting

The United Nations has condemned the renewed hostilities in the Middle East, warning that closing the Strait of Hormuz again would be "a huge setback for civilians in the region and beyond".

UN rights chief Volker Türk also warned of the "impact on human rights far beyond the region".

"Disruptions to the flow of food, medicines, and other necessary commodities have severe socioeconomic and humanitarian consequences," he said in a statement.

Mr Türk called for Washington and Tehran to halt attacks "immediately" and return to their ceasefire.

AFP/Reuters