US will pause mission to ‘guide’ ships through Strait of Hormuz
US President Donald Trump has “paused” the military mission to guide commercial ships through the Strait of Hormuz, in a U-turn just one day after the operation began.
Trump said he wanted “to see” whether a diplomatic solution could be reached with Iran, citing progress in negotiations and a request from Pakistan, which has mediated between Washington and Tehran.
Trump wrote in a Truth Social post: “Based on the request of Pakistan and other Countries” and “the fact that Great Progress has been made toward a Complete and Final Agreement with Representatives of Iran, we have mutually agreed that . . . [Project Freedom] will be paused for a short period of time to see whether or not the Agreement can be finalized and signed”.
He added the US blockade of Iran “will remain in full force and effect”. In Asian hours, Brent crude was down 1 per cent at $108.77 a barrel. The dollar weakened 0.2 per cent against a basket of key trading partners.
Ahead of the pause, the US military had said two American-flagged ships transited the strait successfully with its guidance. However, on Monday, the first day of the mission, US and Iranian forces exchanged fire.
Tehran launched cruise missiles at US warships and commercial vessels, and sent drones and fast-attack boats at merchant ships. The US shot down the missiles and drones, and sank six of the small boats.
US trying to establish ‘zone of transit’ in Strait of Hormuz, says Rubio
The US is trying to establish “a zone of transit” in the Strait of Hormuz as Washington continues its attempt to guide ships through the waterway while tensions with Iran simmer.
That zone would be “protected . . . and then allow ships who want to move, to move through there,” secretary of state Marco Rubio said at a White House news conference on Tuesday.
“That doesn’t happen in 12 hours,” he added. “It takes time to set up that bubble and gain that confidence, but that’s the goal.”
“Iran cannot be allowed to normalise this,” he said, referring to the Islamic republic’s control of the strait.
Oil settles lower as fragile US-Iran ceasefire holds
The price of oil eased in the absence of a major flare-up in Middle East hostilities.
Brent crude, the international benchmark, settled 4 per cent lower to $109.87 a barrel on Tuesday. West Texas Intermediate, the US marker, dropped 3.9 per cent to $102.27.
Prices jumped on Monday following renewed military action around the Strait of Hormuz, with the US saying Tehran had launched cruise missiles at American warships and commercial vessels and that American forces had struck seven Iranian small boats. The United Arab Emirates on Monday said it had intercepted several missiles Iran fired towards it.
Monday’s flare-up came after the US said it was commencing efforts to guide commercial ships from various countries through the strait.