President Donald Trump backed away Tuesday from his proposal to impose a 20% fee on all cargo moving through the Strait of Hormuz, saying the U.S. will instead pursue trade and investment agreements with Gulf nations.

The announcement came one day after Trump proposed the 20% reimbursement fee, arguing the United States should be compensated for protecting one of the world’s busiest shipping lanes.

“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 wrote Tuesday on Truth Social.

Trump did not identify any specific commitments from Gulf governments but predicted the agreements would bring enormous economic benefits.

“Investments will be MASSIVE but, at the same time, extraordinarily good for them, and their future,” he wrote.

The reversal came after the International Maritime Organization, the United Nations’ shipping agency, said Monday it opposes fees on ships transiting international waterways while noting it would wait for additional details on Trump’s original proposal.

RELATED: US Clobbers Iran In Marathon Bombing Spree

Trump also announced that commercial traffic through the Strait of Hormuz would remain open for all countries except Iran.

“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.

He added, “The Hormuz Strait is OPEN, and will remain OPEN, with or without Iran. We are reinstating the THE IRANIAN BLOCKADE, so named because it is only stopping Iran’s ships or customers from entering or leaving. All other countries will have fair and open use of the Strait.”

Download the FREE Trending Politics App to get the latest news FIRST >>