Donald Trump reverses his threat of a toll on ships in the Strait of Hormuz, as the US prepares to resume its blockade of Iran's ports.

On Monday, the US president said he would impose a 20% charge on all cargo shipped through the key oil shipping route.

The toll will be replaced with "trade and investment deals" with Gulf states.

Earlier, Iranian state media reported that explosions were heard near two Iranian port cities, Bandar Abbas and Bushehr.

It followed another night of strikes between the US and Iran, with Iran's Islamic Revolutionary Guard Corps saying it hit two UAE tankers in the Strait of Hormuz - the UN's maritime agency says at least two seafarers were killed.

The US military said it completed strikes on targets overnight aimed at degrading "Iran's ability to attack commercial shipping".