US President Donald Trump said the United States will temporarily pause “Project Freedom,” the military escort operation guiding ships through the Strait of Hormuz, as Washington explores the possibility of a broader agreement with Iran. In a post on social media, Trump claimed “great progress” had been made in talks with Iranian representatives.
Trump said the decision came after requests from Pakistan and several other countries. He added that while the escort operation will be paused for a short period, the US blockade on shipping linked to Iranian ports will remain fully active.
The move comes just one day after the US launched the Hormuz escort mission. According to multiple reports, Iran responded with warning shots, threats against vessels, and aggressive naval activity around the strategic waterway. The Strait of Hormuz handles roughly 25% of global oil trade, making the situation critical for energy markets.
US Secretary of State Marco Rubio separately announced that “Operation Epic Fury,” the offensive US campaign against Iran that started in February, has now concluded. The statement signaled a shift from direct military escalation toward diplomacy and negotiations.
Iran has also tightened control over the Strait of Hormuz by activating a new electronic permit system for vessels. Ships crossing the waterway must now receive regulations through email and obtain official transit permits before entering the strait.
The IRGC Navy warned that any vessel moving outside Iran’s designated shipping corridor could face “decisive action.” Tehran also threatened to target US forces entering the region. Meanwhile, the US Department of War stated that more vessels are expected to pass through the Gulf soon and warned commercial ships they would “see, hear, and feel” American combat power.
Iranian President Masoud Pezeshkian said dialogue remains possible if discussions are “logical,” but insisted threats and military pressure would not work. He claimed Iran was targeted twice during ongoing negotiations and accused Washington of increasing pressure while talks continued.
The standoff has intensified fears across global energy markets. IMF Managing Director Kristalina Georgieva warned that if oil prices rise to $125 per barrel in 2027, global economic growth could slow to just 2%, while inflation may surge to 5.8%.
Chevron CEO Mike Wirth warned that physical oil shortages could emerge soon if disruptions around Hormuz continue. Goldman Sachs said global oil inventories are already near multi year lows, while Asian petrochemical supplies are becoming critically scarce. Reports also suggest Europe could face a major jet fuel crunch by June, with 19 of the world’s 20 largest airlines already reducing flights in May.
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