US President Donald Trump said on Tuesday he was scrapping a planned 20% levy on ships transiting the Strait of Hormuz, a day after announcing it, and would instead pursue trade deals with Gulf allies.
Trump said his decision to withdraw the toll, announced amid renewed tensions with Iran over the strategic waterway, was "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," Trump said on his Truth Social platform.
The US President, however, said he would continue a "FULL Blockade" on ships travelling to and from Iranian ports or carrying Iranian cargo.
Trump had announced on Monday that Washington was now "THE GUARDIAN OF THE HORMUZ STRAIT" and would impose hefty fees on shipping to reimburse the United States for protecting the key oil and gas transit route.
Iran's military command said it would not allow the US to "interfere" in the strait, while warning Gulf neighbours against cooperating with Washington.
Meanwhile, Israeli Prime Minister Benjamin Netanyahu vowed on Tuesday to respond forcefully if Iran launched another attack on Israel.
"I will say it to the leaders of Iran: Do not count on things remaining quiet if you attack us," Netanyahu said at a conference in Dimona.
The southern town hosts a facility officially dedicated to nuclear research but is widely believed to house Israel's undeclared nuclear arsenal.
"The days are over when someone strikes us and we don't hit back with a decisive blow," Netanyahu added.
He said any future strikes would be more powerful than those carried out jointly with key ally the United States earlier this year.
"Do not count on a rerun," Netanyahu said, referring to the previous attacks on Iran, according to a video released by his office.
"Because it will not be a rerun, and that was already powerful enough. This will be a different event, much more powerful."
Netanyahu's warning came as US strikes on Tuesday hit the Iranian port city of Bushehr, home to Tehran's only civilian nuclear power plant.
In retaliation for US strikes that began three days ago, Iran has launched missiles targeting US allies in the region.
(With inputs from AFP)
