Oil slips nearly 2% after Trump pauses Project Freedom

Brent futures fell 1.81% to $107.88 a barrel and West Texas Intermediate dropped 1.72% to $100.51 on Tuesday. Natural gas declined 0.67% to $2.77, gasoline slipped 0.93% to $3.59 and heating oil lost 1.28% to $3.98.

President Donald Trump wrote on Truth Social that he was pausing Project Freedom after requests from Pakistan and other countries, “the tremendous Military Success that we have had during the Campaign against the Country of Iran,” and because “Great Progress has been made toward a Complete and Final Agreement with Representatives of Iran.” He added that “Project Freedom will be paused for a short period of time” and that the U.S. naval blockade of Iranian ports would remain “in full force and effect.”

Project Freedom was launched to move neutral vessels stuck in the Strait of Hormuz. U.S. Central Command had assigned guided-missile destroyers, more than 100 aircraft, unmanned platforms and about 15,000 service members to support the operation before the pause was announced.

A senior Iranian official called the president’s post “riddled with falsehoods” and described the operation as having “failed completely.” The official said Iran will not take part in direct negotiations until the United States formally announces an end to the blockade. Senior Iranian lawmaker Ebrahim Azizi warned any U.S. interference in the Strait of Hormuz would be treated as a breach of the standing ceasefire.

The pause came soon after the operation began. Traders reacted quickly, pushing down crude prices as markets priced in a temporary reduction in immediate maritime risk while also accounting for the continuation of the naval blockade.

The announcement leaves open whether a formal agreement with Iranian representatives can be finalized and how long U.S. forces and the blockade will remain in place.