US President Donald Trump said on Tuesday that the Strait of Hormuz is open to all ship traffic except those linked to Iran, and backtracked from imposing 20 percent fees, announcing a 'complete blockade' on ships heading to or from Iranian ports, as well as ships carrying cargoes linked to Tehran.

Tehran said on Tuesday it will not back down from its right to manage the Strait of Hormuz, and rejected any US role in determining the future of the waterway, as Washington moves toward reimposing a naval blockade on Iran and President Donald Trump proposes fees on transiting shipments in exchange for US protection.

Trump wrote on Truth Social that oil flow continues 'as never before,' thanks to what he described as the tremendous power of the US military, praising Secretary of War Pete Hegseth, Chairman of the Joint Chiefs of Staff Dan Caine, and CENTCOM Commander Admiral Brad Cooper.

He said the 'lying, violent, and malicious' Iranian leadership is leading the country toward 'total destruction,' stressing that the blockade would be limited to ships dealing with Iranian ports and cargoes.

Trump announced he was backtracking from the plan to impose a 20 percent US fee on transiting shipments through the strait, saying he decided, after 'very productive talks' with leaders in the Middle East, to replace the fees with trade and investment agreements with regional countries.

He added that these investments would be 'massive,' leading to a flow of factories, facilities, and equipment to the United States, and creating millions of high-paying American jobs.

Trump said 'America is winning again,' accusing Iran of killing hundreds of thousands, including 52,000 protesters, and reiterated that Tehran 'will never have a nuclear weapon.'

Trump speaks to reporters as he signs an executive order in the Oval Office on Monday (AP)

Brief Notification to Congress

Trump formally notified Congress that the United States resumed combat operations against Iran on July 7, in a letter his administration sees as allowing a new 60-day period to use military force without additional approval from lawmakers.

Trump said in the letter he directed operations as part of his responsibility to protect Americans, national security, and foreign policy interests, and accused Iran of violating the memorandum of understanding by attacking commercial ships in the Strait of Hormuz.

Trump had announced on Monday the reimposition of a naval blockade on Iran, saying the Strait of Hormuz would remain open to other countries, while Iranian ships or those dealing with Tehran would be prevented from entering or leaving Iranian ports.

Trump wrote on Truth Social: 'The Strait of Hormuz is open, and will remain open, with or without Iran. We are reimposing the blockade on Iran.'

He added that the United States will henceforth be known as the 'Guardian of the Strait of Hormuz,' and will charge a fee equivalent to 20 percent of the value of all shipments transiting the waterway.

He said the fees would be used to compensate Washington for the costs of providing security and safety, and that all other countries would enjoy 'fair and open' use of the strait.

In remarks to reporters in the Oval Office, Trump said the United States is targeting 'Iranian capabilities related to the Strait of Hormuz,' and the strikes aim to eliminate Tehran's ability to attack commercial ships.

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In other remarks, Trump said Iran would face 'very strong' attacks, adding: 'We will hit them hard tomorrow, and there is nothing they can do about it.' But he said a deal with Iran was still possible despite the mutual strikes.

Tehran insisted on a direct role in managing ship traffic and transit arrangements. Iran asserts that the strait arrangements are part of the memorandum of understanding signed with the United States, and that Washington reneged on its commitments when it supported the creation of a navigation route not subject to Tehran's approval.

Iran's 'Joint Staff Operations' said the United States has no role in determining the future of the strait, and Tehran will not allow Washington to interfere in its management.

The Iranian army spokesman, Brigadier General Mohammad Akrami Nia, also warned that the strait will not be opened by military pressure, stressing that the armed forces 'will not back down an inch' from Iran's rights in it.

Akrami Nia said 'respecting the rights of the Iranian people is the only way to reopen the Strait of Hormuz,' and that the armed forces informed Washington that any action in the strait outside the arrangements stipulated in the memorandum of understanding would face 'a decisive Iranian response.'

He added that the United States, under the memorandum of understanding to end the war, accepted Iranian arrangements related to the strait, but later sought, as he put it, to create a new transit route 'by deception.'

He said: 'The Strait of Hormuz will never be opened by war, evil, and US aggressions,' stressing that the Iranian armed forces will stand 'to the last breath' in defense of the country's rights in the waterway.

Trump's proposal to impose a 20 percent fee was met with objection from the UN's International Maritime Organization, which said there is no legal basis for imposing mandatory fees on ships transiting straits used for international navigation.

Before the war, about a fifth of global oil and gas trade passed through the Strait of Hormuz daily, exceeding 15 million barrels of fuel, worth about $1.2 billion.

A 20 percent fee, if applied to the total value of shipments, could yield about $240 million daily.

Brent crude prices rose to their highest in four weeks, exceeding $87 per barrel during Tuesday trading, amid fears of the impact of the blockade and exchange of attacks on energy supplies.

'Guardian' of the Strait

Iranian Foreign Minister Abbas Araghchi said Tehran 'has been and will remain the guardian of the Strait of Hormuz,' in response to Trump's announcement that the United States would henceforth be known as the 'guardian' of the waterway.

Araghchi wrote on X: 'The US president is absolutely right. Everyone who ensures the safe passage of commercial ships through the Strait of Hormuz should be compensated.' He added, sarcastically: 'Obviously, 20 percent is excessive. We will be fair.'

Iranian Foreign Ministry Spokesman Ismail Baqaei had said the memorandum of understanding has entered a 'crisis phase,' warning that his country will not abide by its commitments if the United States does not fulfill its obligations.

Baqaei said Iran continues consultations with Qatar, Pakistan, and Oman to prevent further escalation, but insists that navigation arrangements in the strait cannot be imposed on it unilaterally.

The Iranian parliament in turn entered the dispute over the strait, after the head of the National Security Committee, Ebrahim Azizi, announced the submission of a bill titled 'Strategic Action for the Security and Sustainable Development of the Strait of Hormuz and the Persian Gulf.'

Azizi said the bill was officially submitted to parliament, and that lawmakers are 'firm in defending the red lines,' especially regarding the management of the Strait of Hormuz.

A screenshot from a video showing US strikes on an anchorage in Bandar Abbas, southern Iran (CENTCOM)