WATCH: Trump says he's reversing course on Strait of Hormuz fees because Gulf states will invest in U.S.

President Donald Trump announced Tuesday that he is reversing course on previously stated plans to impose tolls on cargo passing through the Strait of Hormuz. The shift comes after leaders from Gulf states reportedly suggested an alternative arrangement. Trump stated that "kings and emirs" and other leaders called him, proposing that they would "love to invest in the United States with billions and billions of dollars" instead of paying the tolls. The president expressed his preference for this investment-based approach, telling reporters in the Oval Office, "I like that actually, because I don't think anybody should be able to charge a fee for the strait." The original proposal involved a 20% toll on cargo. This change in policy suggests a strategic pivot, prioritizing foreign investment in the U.S. economy over direct fees for passage through the critical waterway. The specific Gulf states involved were not named, but the conversation reportedly involved high-level discussions with regional leaders.

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They said we'd love to do it a different way. We'd love to invest in the United States with billions and billions of dollars.