US President Donald Trump said Tuesday he had abandoned his plan to charge a transit fee on ships passing through the Strait of Hormuz, while signaling possible additional sanctions on Iran and outlining a stronger US-Iraq energy partnership.
Trump made the remarks during a bilateral meeting with Iraqi Prime Minister Ali al-Zaidi at the White House.
He said that he had dropped his proposal to charge vessels a fee for using the Strait of Hormuz after Gulf allies offered to expand investment in the US instead.
"The Gulf states are going to invest a tremendous amount of money into the United States, and that was very satisfactory to me," Trump said.
Trump said he gave Iran an opportunity to reach an agreement before blaming Tehran for derailing negotiations.
"I wanted to give them a chance at making a deal... We had a deal two days ago. It was done... and they shot first, and that was a big mistake," Trump said.
Trump said lawmakers are considering expanding pending Russia sanctions legislation to include Iran and Hezbollah.
"They may be adding Iran to it... they may add Hezbollah too," he said.
On Iraq, Trump said US oil companies are rapidly expanding partnerships in Iraq as bilateral ties shift from military cooperation to economic engagement.
"The oil companies are all going in now, and they're doing partnerships with Iraq," he said, adding, "We don't think we need the military there anymore."
On Iran, Trump said Tehran had previously burdened Iraq but no longer poses the same threat after recent military setbacks.
"Iran was a big burden on Iraq," Trump said, adding its military capability is "just a tiny fraction of what it was just four months ago."
Asked about Iraq's role in the Organization of the Petroleum Exporting Countries, Iraqi Prime Minister Ali al-Zaidi said Iraq is seeking a fair share of production as one of OPEC's founding members.