U.S. Announces Project Freedom; Iran Threatens Ships in Strait of Hormuz

Iran issued threats on Monday to attack U.S. warships and commercial vessels transiting the Strait of Hormuz without Iranian permission.

The threats followed the U.S. announcement of Project Freedom, an operation to guide neutral commercial vessels trapped in the Persian Gulf through the strait amid the ongoing U.S.-Israeli war with Iran. U.S. Central Command stated on Sunday that it would coordinate the movement of stranded ships but would not escort them.

U.S. military support for Project Freedom includes guided-missile destroyers, over 100 land- and sea-based aircraft, multi-domain unmanned platforms, and 15,000 service members.

" The Strait of Hormuz, through which about one-fifth of the world's oil and gas normally ships, has been effectively closed by Iran since the war began two months ago. The United States imposed a naval blockade on shipping into and out of Iranian ports and set up a military blockade southeast of the strait in the Gulf of Oman to prevent Iranian oil shipments to world markets, following U.S. and Israeli airstrikes on Iran in late February.

A high-level meeting between American and Iranian leaders occurred in Pakistan amid ongoing negotiations. President Trump said Iran's new proposal via Pakistani mediators "was probably insufficient" but that "negotiations are ongoing and could lead to something very positive."

Shipping industry representatives expressed concerns about the U.S. plan. Jakob P.

According to Bob Savage of BNY, the number of vessels passing the Strait of Hormuz averaged five per day but only three in the last 48 hours as of Monday. Most ships passing since the war began took a route close to Iran's coastline, indicating they obtained Iranian permission.

The United Arab Emirates accused Iran of launching a drone attack on an ADNOC-owned oil tanker attempting to transit the strait on Monday, according to the Emirati state news agency. No injuries were reported. A vessel near the strait was hit by projectiles on Sunday, and a second vessel was attacked by multiple small craft east of the strait near Sirik, Iran, on Sunday, according to the United Kingdom Maritime Trade Operations.

An unidentified cargo ship was targeted off the coast of Fujairah, United Arab Emirates, on Sunday; all crew members were safe.

About 20,000 mariners on around 1,600 vessels are trapped in the Persian Gulf, according to the International Maritime Organization. Nearly 30 ships have been attacked since the war began. A. " Arsenio Dominguez, secretary-general of the International Maritime Organization, called for the release of seafarers because "they are not at fault" in a statement last week.

" Pakistan helped transfer 22 crew members from the Iranian ship MV Touska on Monday as a confidence-building measure coordinated with the United States and Iran, according to Pakistan's foreign ministry. The crew members were detained by the U.S. Navy and flown to Pakistan on Sunday; they would be handed over to Iranian authorities on Monday.

Capt. [name not specified in sources] of U.S. Central Command confirmed the United States transferred the 22 crew members on Sunday and said six crew members from another country were transferred last week. The MV Touska was seized by U.S. forces in the Arabian Sea on April 19 following the U.S. blockade on Iranian ports that went into effect the previous week.

Pakistan's foreign ministry said the MV Touska will be backloaded to Pakistani territorial waters for return to owners after repairs.

" A U.S.-Iran cease-fire last month was briefly disrupted when an alert about a potential threat was issued on mobile phones in the United Arab Emirates. " The UAE ministry sent an alert 15 minutes later saying the threat was over.

The United Arab Emirates is in discussions with the United States to establish a formal currency swap line. Thani al-Zeyoudi, UAE trade minister, said the currency swap is "not about bailing out but needed due to investments between the nations reaching a high level" at a conference in Abu Dhabi on Monday.

Treasury Secretary Scott Bessent suggested last month that Gulf and Asia allies requested currency swap lines amid the Middle East war.

Brent crude rose almost 2 percent to about $110 a barrel on Monday. U.S. oil prices fell below $100 per barrel following President Trump's announcement. Stock markets in Taiwan and South Korea surged more than 4 percent on Monday as semiconductor shares rose.

Gas prices averaged $5.46 a gallon on Monday, according to the AAA motor club, up just shy of 50 percent since the war began. Diesel prices averaged $6.64 a gallon on Monday, up just over 50 percent since the war began.