Oil Climbs as Trump Launches “Project Freedom” to Clear Hormuz Shipping Lanes
Oil markets pushed higher Monday after CNBC reported that President Donald Trump announced a military-backed initiative to open the Strait of Hormuz and release civilian cargo ships trapped since the start of the Iran conflict.
Brent and WTI Advance on Hormuz Relief Hopes
July Brent crude futures climbed roughly 1.2% to around $109.43 per barrel in early Monday trade. U.S. West Texas Intermediate for June delivery added close to 1%, hovering just under $103 per barrel. Both benchmarks have surged dramatically since the closure of the Hormuz waterway, which previously carried approximately one-fifth of global energy supplies.
The Strait of Hormuz has been effectively shut to normal traffic since the outbreak of hostilities between the United States and Iran. The near-total halt in shipping through the channel has sent energy prices to multi-year highs.
What Is Project Freedom
Trump outlined the plan on his Truth Social platform Sunday. He described the effort, which he named “Project Freedom,” as a targeted operation to escort civilian vessels flying flags from nations uninvolved in the conflict safely out of the waterway. The operation was set to begin Monday.
U.S. Central Command confirmed the mission scope shortly after Trump’s post. The military branch said the operation would draw on guided-missile destroyers, more than 100 aircraft operating from land and sea, unmanned multi-domain platforms, and roughly 15,000 deployed service members.
A Tanker Strike Underlines Ongoing Danger
Even as diplomatic and military efforts advanced, the risks in the region remained acute. The United Kingdom Maritime Trade Operations agency reported Monday that a tanker was struck by projectiles north of Fujairah in the United Arab Emirates. The incident highlighted the continued danger for any vessel attempting to navigate waters near the conflict zone.
Background: Escalating Costs and Recession Risk
Before the war, the Strait of Hormuz served as the transit point for a substantial share of the world’s seaborne oil and liquefied natural gas. Its closure has amplified global inflation pressures and raised fears of a broader economic slowdown.
Gaurav Ganguly, head of international economics at Moody’s Analytics, told CNBC that sustained elevated prices could tip the world economy into recession. He warned that Brent remaining above $125 per barrel over an extended period would be enough to push global growth into contraction.
Separately, OPEC+ agreed at its first meeting since the UAE’s departure to raise collective output by 188,000 barrels per day. Traders viewed the modest increase as insufficient to offset the volumes lost through the Hormuz disruption.
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