Brent crude oil futures for July opened Monday near unchanged at $108.11 per barrel, down 0.06 percent as fresh tensions unfolded in the Strait of Hormuz on May 4 [1].
US President Donald Trump announced "Project Freedom" on May 3, a plan to guide vessels stranded in the strategic waterway out starting Monday [1]. Trump did not clarify whether the US Navy would provide escort, a move previously rejected by officials to allow more preparations [1].
The US Central Command said it would support vessel transit through the Strait using guided-missile destroyers, land- and sea-based aircraft, unmanned platforms, and 15,000 service members [1]. Despite the show of force, senior Iranian officials including Ebrahim Azizi, head of the Iranian parliament's National Security Commission, warned that any "American interference" would breach a ceasefire agreed on April 7 [1]. Azizi stressed Tehran would not cooperate with the US plan [1].
Meanwhile, the UK military reported attacks on vessels near the UAE coast and off Iran’s waters on May 4. A tanker was struck by unknown projectiles, and a bulk carrier was attacked by small crafts; thankfully, no crew injuries were reported [1]. The International Energy Agency labeled the situation in the Strait as the biggest energy disruption in history [1].
Saul Kavonic, head of energy research at MST Financial, said the market is growing used to Trump’s early announcements on Iran negotiations turning out to be premature [1].
The US operation supporting maritime transit continues amid high regional tensions, with military assets deployed and diplomatic warnings from Iran. Oil prices held steady on Monday, reflecting market uncertainty. The situation remains active with no confirmed breakthroughs as of today, May 5.
