Oil Prices Climb as Trump Launches ‘Project Freedom’ to Reopen Hormuz Shipping Lane

Oil markets pushed higher Monday after CNBC reported that U.S. President Donald Trump announced a military-backed operation to rescue cargo vessels stranded in the Strait of Hormuz. The move came amid escalating tensions between Washington and Tehran over the critical waterway.

Brent crude for July delivery gained roughly 1.2% to trade near $109.43 a barrel. U.S. West Texas Intermediate for June climbed close to 1% to around $102.90 a barrel.

Trump Deploys Naval Assets to Reopen the Strait of Hormuz

Trump unveiled the initiative, dubbed “Project Freedom,” via a Sunday Truth Social post. The effort targets civilian vessels flagged by nations unaffiliated with the ongoing Iran conflict. Its goal is to allow those ships to resume normal commercial transit.

U.S. Central Command confirmed the operation would draw on substantial military resources. Those assets include guided-missile destroyers, over 100 aircraft operating from land and sea, unmanned multi-domain platforms, and approximately 15,000 service members. The operation was set to begin Monday.

A Waterway That Once Carried a Fifth of Global Energy

The Strait of Hormuz has long been one of the world’s most strategically vital energy corridors. Prior to the conflict with Iran, roughly one-fifth of global energy supplies transited the strait annually. Since the blockade began, traffic has slowed to a near standstill, straining supply chains and lifting prices globally.

The dangers facing vessels in the region remained vivid Monday. The United Kingdom Maritime Trade Operations agency confirmed that a tanker was struck by projectiles north of Fujairah in the United Arab Emirates, highlighting the continued threat to commercial shipping.

Also Read: OPEC+ Raises Output as Oil Markets Navigate Geopolitical Storm

OPEC+ Output Hike Adds Another Variable for Traders

Markets were simultaneously digesting a fresh production decision from OPEC+. The cartel agreed to raise collective output by 188,000 barrels per day. It was the group’s first formal meeting since the United Arab Emirates departed the alliance.

Analysts are watching closely to see whether the increase can meaningfully offset supply disruptions caused by the Hormuz closure.

Recession Risk Grows If Oil Stays Elevated

The economic stakes are rising. Gaurav Ganguly, head of international economics at Moody’s Analytics, warned on CNBC that the world economy has little room left before tipping into recession. He estimated that Brent crude sustained above $125 a barrel could be enough to trigger a global downturn.

With military operations just beginning and Iranian tensions unresolved, traders face an unusually uncertain week ahead in energy markets.

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