President Donald Trump appeared to step back Tuesday from his controversial proposal to charge a 20% "reimbursement" fee on cargo transiting the Strait of Hormuz, instead saying Gulf states would compensate Washington through trade and investment agreements as the ceasefire between the United States and Iran unravels.

The shift comes barely 24 hours after Trump declared the United States would become the "guardian" of the strategic waterway and seek compensation for protecting all cargo passing through it, a proposal with striking similarities to Iran's own efforts to impose tolls on vessels using the strait.

What happened: In a Truth Social post on Tuesday, Trump declared that the Strait of Hormuz was "open to ALL Ship traffic except for Iran" and announced that the United States would maintain a "FULL Blockade" on vessels traveling to or from Iranian ports or carrying Iranian cargo.

But Trump appeared to retreat from his proposed reimbursement fee, saying in a Truth Social post that he had "decided to replace the 20% United States Reimbursement Fee with Trade and Investment Deals" that Gulf states would make in the United States following discussions with leaders in the Middle East. He predicted those regional investments would be "MASSIVE" and create millions of American jobs, echoing a common refrain in his second term.