President Donald Trump has reversed his threat of a 20% fee on all Strait of Hormuz cargo shipping, as the US battles to break Iran's hold on the waterway.
Trump said the toll would be replaced by "massive" trade and investment deals with Gulf states, just hours before the US resumed its blockade of Iranian ports.
It follows renewed strikes between the US and Iran, which triggered a sharp rise in oil prices as tanker traffic through the Strait has virtually stalled.
US Central Command (Centcom) said late on Tuesday its "forces began launching an additional round of strikes against Iran to continue degrading Iranian capabilities used to attack commercial shipping" in the key waterway.
Tehran said it had targeted US military facilities in Bahrain and Jordan after earlier hitting two United Arab Emirates tankers.
