Strait of Hormuz shipping: Trump announces “Project Freedom” to guide stranded vessels out

US President Donald Trump said a new effort called Project Freedom will start on Monday morning. Trump said the plan will help ships leave the Strait of Hormuz. The statement came as the Iran war continued to disrupt shipping. Trump gave few operational details about how the plan will work.

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In a social media post on Sunday, Trump wrote: "neutral and innocent countries have been affected by the Iran war, and we have told these Countries that we will guide their Ships safely out of these restricted Waterways, so that they can freely and ably get on with their business.\" Trump also said Project Freedom would begin Monday in the Middle East.

Strait of Hormuz project as ship attacks continue

A cargo ship near the Strait of Hormuz reported an attack by several small craft on Sunday. The British military’s United Kingdom Maritime Trade Operations centre issued the update. The centre said the vessel was northbound and unidentified. All crew members were safe after the incident off Sirik, Iran, east of the strait.

Iran denied any attack, according to the semi-official outlets Fars and Tabnak. Iran said a passing ship was stopped for a documents check during monitoring. The British monitor said it was the first reported attack in the area since April 22. The monitor added that the threat level remains critical.

Iranian officials have said Iran controls the strait. Those officials claimed ships without US or Israeli links can pass by paying a toll. That position challenges freedom of navigation under international law. Iranian patrol boats are small and hard to detect. Some are powered only by twin outboard motors.

Iran war talks and Strait of Hormuz proposal details

Trump said representatives were in discussions with Iran. Trump wrote the talks could lead to \"something very positive for all.\" Tehran also said it was reviewing the US response to Iran’s latest proposal. Iran stressed the contacts were not nuclear talks at this stage.

Tehran is reviewing the U.S. response to its latest proposal, Iran’s judiciary Mizan news agency cited Foreign Ministry spokesman Esmail Baghaei as saying. \"But at this stage, we have no nuclear negotiations,\" Baghaei said. Iran’s nuclear programme and enriched uranium remain central in US tensions. Tehran has indicated it wants that issue addressed later.

Iran’s proposal aims to end the war, not extend the ceasefire, according to state-linked media. The proposal seeks other issues resolved within 30 days. Trump said on Saturday that the proposal was under review. Trump also expressed doubt about a deal in a social media message.

Iran’s 14-point proposal calls for the US to lift sanctions and end a naval blockade. It also calls for US forces to leave the region and for hostilities to stop. The proposal includes Israel’s operations in Lebanon, Nour News and Tasnim reported. Those agencies have close ties to Iran’s security organisations.

Iran sent the proposal through Pakistan, which hosted face-to-face talks last month. Two officials in Pakistan spoke on condition of anonymity. The officials said Pakistan’s prime minister, foreign minister and army chief urged direct US-Iran talks. On Sunday, Iran’s Foreign Minister Abbas Araghchi also spoke with counterparts in Oman, Brazil, and Spain.

Strait of Hormuz impact on oil trade and shipping warnings

The Strait of Hormuz sits at the mouth of the Persian Gulf. About a fifth of global oil and natural gas trade usually passes through it. Fertiliser shipments also move through the route and are important for farmers. Iran’s grip tightened after the US and Israel launched the war on Feb 28. Global markets have been unsettled since then.

The British military monitor said ships near Ras al-Khaimah received radio warnings on Sunday. The messages told vessels to leave anchorages. Ras al-Khaimah is the northernmost emirate in the United Arab Emirates. It is close to the strait. It was unclear who sent the VHF warnings.

Iran’s deputy parliament speaker Ali Nikzad spoke during a visit to port facilities on Larak Island. \"Tehran will not back down from our position on the Strait of Hormuz, and it will not return to its prewar conditions,\" Nikzad said Sunday. Tehran has attacked and threatened ships, effectively closing the strait.

US naval blockade and Strait of Hormuz toll claims

The US has warned shipping firms about payments to Iran for safe passage. The warning included payments through digital assets. A US naval blockade has operated since April 13. US Central Command said on Sunday that 49 commercial ships were told to turn back. The blockade is also limiting Iran’s oil revenue.

US Treasury Secretary Scott Bessent spoke on Fox News on Sunday about toll payments. \"We think that theyve gotten less than USD 1.3 million in tolls, which is a pittance on their previous daily oil revenues,\" Bessent said. Bessent added Iran’s oil storage is filling. Bessent said wells may start shutting within the next week.

Iran currency pressure linked to Strait of Hormuz crisis

Iran’s currency weakened further on Sunday, the second working day of the week. In Tehran’s Ferdowsi Street, the dollar traded at 1,840,000 rials. The rial was at 1.3 million per dollar in December, then a record low. That earlier fall triggered protests over worsening economic conditions.

Prices in Tehran markets have stayed unstable, with some goods rising daily. Iranian media reports said some factories did not renew worker contracts after March. The reports said many workers lost jobs. Yousef Pezeshkian, adviser and son of President Masoud Pezeshkian, wrote on Telegram that both sides saw themselves as winners and would not back down.

The developments left shipping and trade at risk as Project Freedom was set to begin on Monday. The ceasefire has held for three weeks, though Trump said on Saturday that more strikes were possible. Iran continued to review the US response to its proposal. The Strait of Hormuz remained under strain from threats, warnings, and tight controls.

With inputs from PTI