Trump launches 'Project Freedom' as Strait of Hormuz closure slashes global oil flows
Global markets reacted sharply after President Trump unveiled a major military operation to reopen the Strait of Hormuz. The move follows Iran’s closure of the key shipping route, cutting daily oil flows by 14.5 million barrels. Meanwhile, bitcoin surged past $80,000 amid a technical rally and strong institutional demand.
President Trump announced 'Project Freedom', a U.S.-led mission to escort neutral cargo ships stranded by the Strait of Hormuz shutdown. The operation will deploy guided-missile destroyers, over 100 aircraft, and roughly 15,000 service members. In response, Ebrahim Azizi, a senior Iranian official, warned that any U.S. interference in the strait would breach ceasefire terms.
The closure has already disrupted oil supplies, pushing Brent crude down 2.4% to around $108 per barrel. West Texas Intermediate (WTI) also dipped, hovering near $102 per barrel. Despite tensions, Trump’s team reported 'very positive discussions' with Iranian representatives. In financial markets, bitcoin climbed above $80,000 after a short squeeze liquidated over $114 million in bets against the cryptocurrency. Institutional support remained strong, with U.S. spot bitcoin ETFs recording a fifth straight week of net inflows totalling $153.87 million. Other digital assets also rose, with ether up 3.6% to $2,382 and XRP gaining 2% to $1.41.
The Strait of Hormuz closure has slashed global oil output by 14.5 million barrels per day, while U.S. military action aims to restore shipping routes. Oil prices fell as traders assessed the impact, but cryptocurrencies rallied on institutional demand. The situation remains fluid as diplomatic talks continue.
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