U.S. President Donald Trump on Tuesday withdrew his proposal to impose a 20% transit fee on vessels passing through the Strait of Hormuz in exchange for “protection,” saying he now prefers investment agreements instead.

The announcement came just hours before the proposed measure was due to take effect. Trump said the strait would remain open to international shipping, except for Iranian vessels.

The decision trimmed gains in global oil prices amid continued uncertainty over the future of de-escalation efforts between Washington and Tehran.