Trump Announces Pause in Project Freedom to Advance Iran Negotiations Amid Strait of Hormuz Tensions

President Trump announced on Monday that the United States and Iran have mutually agreed to pause Project Freedom, a U.S.-led initiative to ensure safe passage of ships through the Strait of Hormuz, while the blockade stays in full force. The pause aims to determine if a complete and final agreement can be reached, with Trump citing great progress in negotiations and requests from Pakistan and other countries.

The move follows Iran's establishment of a new body to manage vessel transit in the strait and recent attacks on shipping. Project Freedom began as a response to disruptions in the strait, where around 1,600 ships remain stranded, according to a New York Times report cited in multiple sources.

U.S. warship, stating no Navy vessels were hit. Two U.S.-flagged merchant vessels transited the strait without incident on the same morning.

A French-owned cargo ship, the CGM San Antonio, was struck by what U.S. officials described as a possible land-attack cruise missile late Tuesday evening local time near Dubai. Several Filipino crew members were injured in the incident, which marked the fourth ship attack in the region since Sunday, including a fire, a projectile strike, and a small craft assault.

The UK Maritime Trade Operations confirmed receiving a report of a cargo vessel hit by an unknown projectile. Iran responded to the start of Project Freedom by declaring a new control area in the strait and resuming limited strikes on shipping and some Gulf neighbors, according to U.S. officials.

Secretary of State Rubio described the U.S. operation as defensive, emphasizing that there would be no shooting unless fired upon first. He added that Operation Epic Fury had concluded.

“This is not an offensive operation, this is a defensive operation, and what that means is very simple, there's no shooting unless we're shot at first.”

Trump's announcement highlighted tremendous military success against Iran and progress toward an agreement, with the pause intended as a short-term measure. Iranian state media reported the new transit management body, while U.S. sources noted Iran's missile and drone responses to the U.S. destroyers entering the strait.

The initiative focused on escorting oil tankers out of the Persian Gulf, with no plans yet for two-way traffic to restart regional oil production. Oil futures fell following the pause announcement, reflecting market reactions to the potential de-escalation.

RBA Governor Bullock stated that costs would mount all year even with a swift resolution to the conflict.

The ceasefire in the Middle East faces risks after exchanges of fire and threats over the strait. Shipping firms have questioned the safety of transit despite the U.S. plan, with reports of a U.S. warship allegedly hit by Iran, which the U.S. denied.

Former U.S. assistant secretary of state Mark Kimmitt criticized Iran's declaration of a new Gulf security architecture as setting a dangerous global precedent. Rep. Russell Fry described Iran as testing the administration, likening it to a petulant child trying to wait out President Trump.

The Gulf states and Israel hold differing visions for the region's future, with some analysts noting that Israel's aspirations could put the Gulf in harm's way. The pause in Project Freedom represents a shift aimed at finalizing a deal to end the war.

“Based on the request of Pakistan and other Countries, the tremendous Military Success that we have had during the Campaign against the Country of Iran and, additionally, the fact that Great Progress has been made toward a Complete and Final Agreement with Representatives of Iran, we have mutually agreed that, while the Blockade will remain in full force and effect, Project Freedom (The Movement of Ships through the Strait of Hormuz) will be paused for a short period of time to see whether or not the Agreement can be finalized and signed." — President Trump, Monday (Newsquawk). The situation remains dynamic, with ongoing monitoring of shipping safety and negotiation progress. U.S. officials continue to emphasize the defensive nature of their actions, while Iran maintains control measures in the strait. Global energy markets are watching closely for signs of resolution or further escalation.”