U.S. President Donald Trump announced on Tuesday that the Strait of Hormuz will remain open to international shipping, except for vessels linked to Iran, which he said would be subject to a complete maritime blockade.

Trump also said he had abandoned his proposal to impose a 20 percent fee on cargo transiting the Strait of Hormuz, opting instead to pursue trade and investment agreements with Gulf countries.

He said the decision followed discussions with regional leaders and would strengthen economic cooperation.

Describing the planned investments as substantial, Trump said they would be “huge” and would deliver significant long-term benefits to both the United States and its Gulf partners.