US Claims Ceasefire Still in Place, "Project Freedom" Tests Hormuz's Resilience
The United States has played down speculation of a return to active warfare with Iran following a series of incidents in the Strait of Hormuz and a missile attack on the United Arab Emirates (UAE). Chairman of the US Joint Chiefs of Staff General Dan Caine said Tehran's attacks on ships in the Persian Gulf and the UAE were not considered a ceasefire violation, while Defense Secretary Pete Hegseth emphasized that the truce, which began nearly a month ago, remains in effect.
Tensions escalated on Monday (May 4) after President Donald Trump announced "Project Freedom," a temporary, defensive operation to guide neutral ships stranded in the Gulf through Hormuz. At least two merchant ships reportedly crossed the strait with US assistance, while two US warships entered the Gulf. However, Hegseth emphasized that the US naval blockade of Iranian ports remains in full force, while emphasizing the readiness of US forces to resume operations if needed and calling on other countries to assist.
Meanwhile, Iran warned all ships against attempting to pass through Hormuz without Tehran's permission. Iran reportedly attacked a South Korean cargo ship and an empty ADNOC tanker on Monday, with no casualties reported. Caine said more than 1,550 commercial vessels with approximately 22,000 sailors are currently stranded in the Persian Gulf. The UAE also stated it was responding to missile and drone threats, intercepting nearly all of the approximately 20 projectiles fired from Iran the day before.
The market impact was again reflected in oil: Brent fell about 3.6% on Tuesday to below $111 per barrel, after surging nearly 6% on Monday. These movements confirm that the market is still pricing in the risk of escalation in the key energy route, despite Washington's attempts to frame the operation as a humanitarian and defensive measure. Looking ahead, market focus will be on the smooth passage of ships in Hormuz, Iran's response to "Project Freedom," the status of the US blockade, and progress in Pakistani mediation, which Iran said was "making progress." (Arl)
Source: Newsmaker.id
