India, July 14 -- US President Donald Trump on Tuesday scrapped his proposal to impose a 20 per cent reimbursement fee on all cargo passing through the Strait of Hormuz, saying it would instead be replaced by trade and investment agreements with Gulf nations.

In a post on Truth Social, Trump said the decision followed "highly productive conversations" with leaders in the Middle East.

"Based on highly productive conversations with Middle East leadership, I have decided to replace the 20% United States Reimbursement Fee with Trade and Investment Deals that the various Gulf States will be making into the United States," Trump wrote.

He added that the investments would be "massive" and the agreements would be "extraordinarily good" for the...