Trump Cancels Project Freedom After Saudi Arabia Denies Airspace and Base Access

President Trump suspended Project Freedom, the military operation to escort commercial ships through the Strait of Hormuz, after Saudi Arabia suspended U.S. access to its airspace and military bases needed to support the mission. Two U.S. officials told NBC News the reversal followed pushback from the Gulf nation and a phone conversation between Trump and Saudi Crown Prince Mohammed bin Salman that did not resolve the dispute.

The operation, announced by Trump on Sunday, was intended to counter Iranian threats to block the waterway through which at least one-fifth of the world's seaborne oil passes. Within hours of the announcement, Saudi officials warned they would not permit the U.S. to use their territory for the effort.

Kuwait imposed similar restrictions after coming under Iranian missile fire, according to reports citing U.S. officials. Project Freedom lasted 48 hours. Out of more than 1,600 vessels stuck in the strait, only two ships were guided through under the operation, CNN reported.

The pause prompted oil prices to fall on renewed hopes that U.S.-Iran talks could ease tensions in the Gulf. Trump has expressed optimism about reaching a framework agreement with Iran within one week. Iran is expected to provide its formal reply to the U.S. proposal through mediators on Thursday, according to a regional source cited by CNN.

The president has also indicated a deal could be reached before his upcoming trip to China. Even as diplomatic efforts continue, Trump has discussed the possibility of turning to military action without an agreement. Axios reported that U.S. officials are weighing options ahead of the China visit.

Trump posted on social media comparing the "Iran Excursion" to other wars while suggesting the conflict could end soon but threatening renewed strikes if needed.

Oil prices fell following the pause in Project Freedom and signs of possible diplomatic progress. Gasoline prices in the United States continued to rise despite the developments. Citigroup's global head of commodities research said prices will keep fluctuating until it becomes clear whether Trump and Iran will strike an agreement to end the war.

" The Department of Justice is investigating $2.6 billion in oil trades placed shortly before Trump’s major announcements on the Iran conflict, sources told ABC News. The inquiry focuses on suspiciously timed transactions.

Negotiations to end the war remain chaotic.

U.S. negotiators believe they have a framework for a deal but must still persuade Trump to accept terms he has previously rejected, according to reports. A legal deadline on continuing the conflict is also approaching, leaving the president at a crossroads on whether to pursue further military options.

The abrupt end to the escort plan highlighted limits on U.S. military posture in the Gulf. America's Gulf allies bore the brunt of Iranian retaliation following earlier U.S. strikes, contributing to their reluctance to support additional operations from their soil.

" — Shell CEO Wael Sawan (2026) Oil prices fell and stocks rose after Trump’s about-face on the escort operation, The New York Times reported. European equity futures pointed to a quiet open after recent gains. The broader market reaction reflected hopes that diplomatic efforts might reduce immediate risks to energy shipments.

The situation remains fluid as Iran prepares its response and Trump weighs next steps before traveling to China. The Department of Justice investigation into pre-announcement oil trades adds another layer of scrutiny to the fast-moving events.