Washington: US President Donald Trump has retracted his proposal to impose a 20 percent fee on cargo transiting through the Strait of Hormuz. Instead, he is pursuing trade and investment agreements with Persian Gulf states, while maintaining a blockade on Iranian shipping.

According to Radio Free Europe Radio Liberty, Trump's policy shift comes as the US military continues to strike targets in southern Iran, with Iran retaliating by targeting Gulf shipping. Explosions were reported around Bandar Abbas, a crucial location near the Strait of Hormuz, and Bushehr, the site of Iran's sole nuclear power plant. Reports also indicated attacks on islands off Iran's southern coast, including Kish, Qeshm, and Abu Musa.

Amid this military escalation, regional responses have varied. Jordan and Bahrain reported intercepting Iranian ballistic missiles, and the United Arab Emirates noted strikes on vessels in the strait, resulting in casualties. The US Central Command announced the reinstatement of a naval blockade on Iranian maritime traffic, emphasizing their commitment to facilitating non-violative regional shipping.

In light of these developments, Trump informed Congress of renewed conflict with Iran, granting him a 60-day window to conduct military strikes without legislative approval. He expressed optimism about a potential deal to end hostilities, despite recent setbacks in negotiations.

Trump's earlier statement on Fox News suggested possible US control over the strait, a critical passage for global energy transit. His social media declaration of the US as "THE GUARDIAN OF THE HORMUZ STRAIT" accompanied the initial transit fee proposal, which was later withdrawn.

Iran's response has been defiant, with the Islamic Revolutionary Guards Corps demanding an end to US military presence for restoring normalcy in the strait. Iran's military leadership warned that collaboration with Washington would incur full responsibility for regional instability.

The diplomatic landscape remains fraught, with Iranian Foreign Minister Abbas Araqchi engaging with Oman's Foreign Minister to discuss safe navigation through the strait. While the US was absent from these talks, Omani mediators presented proposals to Iran for resolving navigation disputes, which Iran is reviewing internally.

This backdrop of heightened tensions also features the new Supreme Leader of Iran, Mojtaba Khamenei, vowing revenge for his father Ali Khamenei's death in February. His rhetoric underscores the potential for further escalation, as Trump warned of severe US military retaliation against any assassination attempts on him.