US President Donald Trump has withdrawn plans to impose a 20% levy on ships passing through the Strait of Hormuz, opting instead for Gulf country investments in the US.

This decision comes amid renewed military clashes between the US and Iran, with both sides launching strikes on each other's assets and shipping routes.

The Strait of Hormuz, a critical chokepoint for global oil supplies, has seen heightened tensions after the US reimposed a blockade on Iranian ports and Iran retaliated with attacks on commercial vessels.The conflict has disrupted maritime trade, raised energy prices, and prompted warnings for commercial airlines operating in the region.Trump's shift from tolls to investments aims to avoid economic burdens on shipping while securing strategic interests.However, experts caution that military solutions to control the strait would require massive resources.

The ongoing violence threatens global energy markets and underscores the fragile balance of power in the Gulf, with regional allies like the UAE and Saudi Arabia facing potential retaliation risks.