Markets on alert as Trump vows ‘Project Freedom’ for Hormuz, setting up potential showdown after renewed attacks on ships
Financial markets were muted on Sunday as investors were reluctant to bite on the latest well-timed social media post from President Donald Trump about Iran.
Futures tied to the Dow Jones industrial average rose 84 points, or 0.17%. S&P 500 futures were up 0.11%, and Nasdaq futures added 0.06%.
U.S. oil futures dipped 0.77% to $101.16 a barrel, and Brent crude eased 0.59% to $107.53. Gold fell 0.28% to $4,631.60 per ounce.
The U.S. dollar was down 0.1% against the euro and fell 0.12% against the yen. The yield on the 10-year Treasury was flat at 4.372%.
An hour before oil futures began trading, Trump posted on Truth Social that the U.S. will guide ships from “neutral and innocent” countries out of the Strait of Hormuz. He dubbed the effort Project Freedom, which will start Monday.
“The Ship movement is merely meant to free up people, companies, and Countries that have done absolutely nothing wrong — They are victims of circumstance,” he added. “This is a Humanitarian gesture on behalf of the United States, Middle Eastern Countries but, in particular, the Country of Iran.”
Trump also said his envoys were having positive discussions with Iran, but warned that if his Project Freedom is interfered with, it will “have to be dealt with forcefully.”
Any U.S. effort to lead ships out of the Persian Gulf and through the Strait of Hormuz, which has been mined by Iran, could involve the Navy.
U.S. warships have started conducting anti-mine operations, though it could take weeks or months to completely eliminate the threats. Meanwhile, Iran has insisted that any ships transiting the strait pay the regime a toll and follow a course approved by the Islamic Revolutionary Guard Corps.
Earlier on Sunday, a cargo ship near the Strait of Hormuz said it was attacked by multiple small boats, marking the first such incident since April 22. While there was no immediate claim of responsibility, the IRGC is known to use small fast-attack boats to assert control over the strait.
Trump made no mention of the Navy or Iran’s toll in his post on Sunday. At the same time, the U.S. military continues to enforce a naval blockade on Iran to keep its oil exports bottled up and add economic pressure.
The Navy has already tested the waters in the strait, by very visibly sending two destroyers through the chokepoint last month despite warnings from the IRGC.
Iranian media said the destroyers turned around after being confronted by the IRGC, which reportedly launched a drone in the direction of the destroyers. The IRGC also said any attempt by military ships to cross the strait would be met with a “firm and forceful response.”
Before then, U.S. warships avoided the strait as Navy officials previously have described it as an Iranian “kill box” filled with numerous threats, including anti-ship missiles, drones, fast-attack boats, and mines.
This story was originally featured on Fortune.com