Trump reverses threat of 20% fee on Strait of Hormuz cargo as US prepares to resume Iran ports blockade

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.

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.

Trump on Monday declared that the US was now the "guardian" of the Strait of Hormuz, and vowed to impose a 20% charge on all cargo shipped through the waterway to pay for protecting it.