Trump favors investments with Gulf states over Hormuz tariffs

In a blend of “maximum pressure” policy and keeping the door ajar for diplomacy, the United States has escalated its confrontation with Iran within currently controlled limits, combining deep military strikes, a naval blockade, and diplomatic engagement.

While President Donald Trump continues to hint at the possibility of reaching an agreement, he reversed his earlier decision to impose a toll on ships transiting the Strait of Hormuz. On Monday, he had announced the fee, but on Tuesday, he opted instead for commercial agreements with allied Gulf states.

Less than five hours before the scheduled entry into force of the toll and naval blockade at 20:00 GMT, Trump wrote on his “Truth Social” platform: “Based on extremely productive discussions with leaders in the Middle East, I have decided to replace the 20% US recovery fee with commercial and investment agreements to be signed by various Gulf states with the United States.”

He confirmed that a “full blockade” would remain in place for ships heading to or coming from Iranian ports, specifically targeting vessels sailing to or from those ports or carrying any shipments linked to Tehran.

During a press conference after welcoming Iraqi Prime Minister Ali al-Zaidi at the White House, the US president stated that he believed no one should impose tolls on the strait’s transit.

“I don’t like the concept of tolls, but at the same time, it is not fair that we protect this strait for the benefit of the entire world,” he added.

At the same time, the US president intensified his rhetoric regarding Iran’s nuclear program, hinting at the targeting of the heavily fortified “Mount Picax” (or “Mount Axe”) facility near the Natanz site, and affirming that the United States would not allow Iran to possess a nuclear weapon. He warned that military operations could continue if Tehran did not comply with US conditions.

He stated that “Mount Axe is a potential target for a major strike near the front door... We will destroy Mount Axe. Tell the Iranians to get ready.” He predicted that the attack would be carried out in “very close” time.

Trump had previously sent a formal notification to Congress on July 7, stating the resumption of combat operations against Iran. His administration views this message as opening a new 60-day window for the use of military force in the region without congressional approval.

He said the United States would be ready to support Iraq if it needed protection, but added that he did not believe this would be necessary.

He announced that the United States would conclude many deals with Iraq and extract large quantities of oil from it.

On the ground, a statement from US Central Command (CENTCOM) earlier on Tuesday reported that over a five-hour period, “US forces successfully struck military targets across Iran, including Bushehr, Chabahar, Jask, Konarak, Abu Musa, and Bandar Abbas.”

It specified that among the targeted assets were “coastal defense systems, facilities for drones and missiles, and naval means.”

In Tehran, state television reported five explosions near the Strait of Hormuz, in the vicinity of the coastal city of Bandar Abbas, an area targeted by US strikes in recent days.

The bombing also hit the city of Abadan, which houses the oldest oil refinery in the Middle East, as well as the coastal city of Mahshahr, another hub for petrochemical industries.

In the evening, Tasnim News Agency reported an explosion of a US shell near a water and electricity facility on Kish Island, while Fars News Agency noted that “several explosions were heard on Qeshm Island.”

The European Union Aviation Safety Agency (EASA) has reinstated its stringent warning to airlines operating in the Middle East, urging them to avoid the airspace of Bahrain, Kuwait, Qatar, the United Arab Emirates, and the Gulf of Oman, amid renewed tensions between the United States and Iran.