Oil prices changed after President Donald Trump announced a temporary halt to Project Freedom, the US-led military operation escorting vessels through the Strait of Hormuz. The decision, framed as a step toward finalizing a nuclear agreement with Iran, unwound a portion of the week’s gains and pushed crude benchmarks lower.
Donald Trump pausing ‘Project Freedom’ brings changes to oil price
The global benchmark for Crude, Brent, fell 1.7% to $108 a barrel while US traded oil decline 1.6% to $100.60. The drops came just days after prices climbed more than 6% amid escalating attacks across the Middle East.
Donald Trump disclosed the pause in a social media post on Tuesday, writing that Project Freedom would be “paused for a short period of time to see whether or not the Agreement can be finalized and signed.”
He added that “Great Progress has been made toward a Complete and Final Agreement with Representatives of Iran.” The conditional ceasefire between the United States and Iran, first announced on April 8 and later extended, has kept crude prices elevated but prevented an outright supply crisis.
Project Freedom had been designed to get the stranded vessels out of the Strait of Hormuz, the narrow waterway through which roughly one-fifth of global oil and gas shipments pass. Trump stated that the operation would remain suspended while diplomatic channels are tested, though he confirmed the US would continue blocking ships traveling to and from Iranian ports to maintain economic leverage over Tehran.
Secretary of State Marco Rubio echoed the president’s preference for diplomacy. “We would prefer the path of peace. What the president would prefer is a deal,” Rubio told reporters. He also confirmed that the initial joint US-Israeli offensive launched against Iran had concluded, saying Washington’s objectives had been met.
While Project Freedom was active, hostilities flared. The US struck several Iranian fast boats in the channel, and the United Arab Emirates accused Iran of launching strikes on one of its oil ports, a claim Tehran has denied. These incidents tested the conditional ceasefire and sent oil prices swinging.
(Source: BBC)
Originally reported by Devanshi Bau on Mandatory.
