Trump Pauses Project Freedom for Strait of Hormuz as U.S. Negotiators Finalize Iran Deal

President Donald Trump said the United States was pausing “Project Freedom” to escort ships through the Strait of Hormuz while negotiators try to finalize a deal with Iran, and the announcement helped drive a sharp market reaction.

“Skip to content Investing Prediction: Trump’s Iran Deal Will Spark a Stock Market Rally Into Midterms”

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NBC News reported that the price of oil plunged and stocks surged Wednesday after a report said the U.S. believed it was nearing a deal to end the war with Iran and eventually reopen the Strait of Hormuz.

BBC

NBC News also said U.S. crude oil plunged by as much as 15%, to $88 per barrel, and Brent crude fell as much as 11%, to $96 per barrel, before later moderating.

In the same reporting, Trump told the New York Post it was “too soon” to prepare to sign a peace deal, while Axios reported Washington and Tehran were working on “a one-page memorandum of understanding to end the war.”

The Guardian said Trump posted that the strait would be “open to all” if Tehran struck a deal with Washington, but warned that “the bombing starts” if Iran did not.

The Guardian also reported that Iran’s Revolutionary Guards’ Navy said safe transit through the strait would be ensured with “US threats coming to an end and new procedures in place.”

CBC

Separately, the BBC reported that traders bet hundreds of millions of dollars on oil contracts just minutes before Trump’s post about Iran talks, with trading volume rising sharply about fifteen minutes before the announcement.

The BBC said at 6:49 a.m.

Eastern Time traders executed 734 trades on West Texas Intermediate futures on the New York Mercantile Exchange, before the number jumped a minute later to 2,168 trades, about 170 million dollars.

NBC News said the pause does not mean an end to hostilities is assured, noting that “An end to hostilities is far from assured” even as officials worked on a memorandum and Iran’s Foreign Affairs Ministry said a U.S. proposal was under review.

The New York Times described the Strait of Hormuz as effectively closed and said “some 1,600 ships remain stranded” with “roughly 20,000 seafarers on board,” even after Trump’s reversal.

The Guardian added that Trump said his blockade of Iranian ports would remain in place while the “Project Freedom” escort was paused for “a short period” to finalize a deal.

With the strait still central to shipping and energy flows, the next step in the sources is whether the framework for more detailed nuclear talks can move from reported progress to an agreement that reopens transit.