Donald Trump has backtracked on plans to impose a 20 per cent toll on ships sailing through the Strait of Hormuz just one day after announcing it.

On Tuesday, the US president said he reversed his decision after being contacted by the Gulf states, who offered to invest “billions and billions” of dollars in the United States instead.

On Monday, he said all ships heading through the sea passage would be subject to a 20 per cent “reimbursement fee” in return for US protection. Top administration officials have previously said tolls would be illegal under international law.

US forces conducted further strikes on Iran on Tuesday in retaliation for attacks by the regime on commercial vessels transiting the strait.

Centcom said later on Tuesday it had launched “an additional round of strikes against Iran to continue degrading Iranian capabilities used to attack commercial shipping in the Strait of Hormuz”.

Mr Trump said he had been contacted by leaders from Saudi Arabia, the United Arab Emirates (UAE), Qatar, Bahrain and Kuwait offering to make “massive investments” in the US after he announced the plans.