Oil Prices Climb as Trump Launches ‘Project Freedom’ to Unblock Hormuz Ships
Oil prices pushed sharply higher on Monday, CNBC reported, after President Donald Trump unveiled a military-escorted initiative to release civilian vessels trapped in the Strait of Hormuz since the outbreak of the Iran war.
Trump Announces ‘Project Freedom’ for Hormuz Shipping
Trump announced the plan via Truth Social on Sunday. He labelled it “Project Freedom” and described its purpose as getting civilian cargo ships belonging to non-belligerent nations safely out of the waterway. The operation was set to begin Monday.
U.S. Central Command confirmed the military scope shortly after. The effort will involve guided-missile destroyers, more than 100 land- and sea-based aircraft, unmanned multi-domain platforms, and approximately 15,000 service members deployed to support the mission.
Brent Crosses $110 as Hormuz Remains Choked
By early Monday morning in New York, July Brent crude futures had risen roughly 2.3% to around $110.63 per barrel. U.S. West Texas Intermediate for June gained nearly 2% to approximately $103.96 per barrel.
The Strait of Hormuz previously handled close to one-fifth of the world’s energy supply. Since the blockade took effect, traffic through the waterway has ground to a near halt. The situation intensified Monday after the UK Maritime Trade Operations agency confirmed that a tanker had been struck by projectiles north of Fujairah in the United Arab Emirates.
Background: A Waterway Central to Global Energy
The Strait of Hormuz sits between Iran and the Arabian Peninsula. It is the world’s single most important oil chokepoint. Any sustained closure raises global energy costs rapidly and disrupts supply chains far beyond the immediate region. Analysts have long warned that even a partial blockade can send shock waves through commodity markets within days.
Also Read: What the Iran War Means for Global Oil Supply
Recession Risk Grows With Every Dollar Added to Brent
Gaurav Ganguly, head of international economics at Moody’s Analytics, told CNBC that the global economy is dangerously close to tipping into contraction. He said sustained Brent prices around $125 per barrel could be enough to push the world economy into recession.
Separately, OPEC+ agreed at its first meeting since the UAE’s departure from the cartel to raise output by 188,000 barrels per day. Traders are weighing whether that increment can meaningfully offset the volumes lost to the Hormuz closure.
Also Read: OPEC+ Output Decision Explained
Markets will be watching closely to see whether Project Freedom succeeds in moving vessels without provoking a direct Iranian response, a development that could push prices well above current levels.
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