President Donald Trump on Tuesday walked back his announcement, made the previous day, that the U.S. would institute a 20% fee on cargo transiting the Strait of Hormuz, saying the toll would be replaced by trade deals with Gulf states. 

Trump, having hosted Iraqi Prime Minister Ali al-Zaidi at the White House Tuesday morning, wrote on Truth Social that his change of heart was “based on highly productive conversations with Middle East leadership,” and that the deals “will be MASSIVE but, at the same time, extraordinarily good for them, and their future.”

Trump did not name specific countries, provide figures or outline a timeline for the new arrangement.

Trump reiterated in his post that the U.S. blockade, reinstituted on Tuesday, will remain in place on Iranian ships and cargo.

The reversal follows a rapidly escalating military exchange in the Gulf: The U.S. carried out a third consecutive night of strikes against Iranian targets early Tuesday. Iran, in turn, claimed to have struck and disabled two tankers in the strait and fired on Bahrain, Jordan and Kuwait.