U.S. Central Command (CENTCOM) launched Project Freedom to ensure freedom of navigation through the Strait of Hormuz. The mission involves destroyers, aircraft, and 15,000 personnel. This operation aims to restore the passage of oil and liquefied natural gas (LNG).
Approximately 25% of the world's seaborne oil trade typically passes through the strait. Recent disruptions had halted most traffic for several months.
Global energy markets responded immediately to the announcement. Brent crude futures declined 1.9% as the mission began. Brent prices currently sit near $106 per barrel. West Texas Intermediate fell below $100 per barrel. These prices are down from a crisis peak of $126 per barrel.
The operation acts as a short-term de-risking event for the energy sector. It aims to ease fears of a prolonged supply crisis. The move may also temper high oil prices that recently boosted producer revenues.