U.S. Launches Hormuz Escort Operation as Gasoline Jumps 40%, Bessent Sees Pullback
Project Freedom launches Monday to escort commercial vessels through the Strait of Hormuz after Brent crude surged 50% in March following U.S.-Israel strikes on Iran. Treasury Secretary Scott Bessent predicts energy prices will decline later this year despite U.S. gasoline rising over 40% since February to $4.18 per gallon.
1. Project Freedom Mission Launch
U.S. President announced Project Freedom to begin Monday, deploying naval assets to guide neutral commercial vessels through the Strait of Hormuz. The initiative responds to requests from multiple nonbelligerent nations and aims to alleviate food and supply shortages on stranded ships while restoring trade routes.
2. Strait of Hormuz Shipping Disruption
The closure of the Strait since late February followed coordinated U.S.-Israel attacks on Iranian targets, halting roughly 20% of global oil and LNG exports. Brent crude futures rallied 50% in March as vessels faced prolonged detentions and humanitarian shortages.
3. Treasury Forecasts Price Decline
Treasury Secretary Scott Bessent projects energy prices will fall later this year despite U.S. gasoline peaking at $4.18 per gallon after a 40% jump since February. He attributes current highs to Middle East tensions and expects a reversal when shipping routes reopen and diplomatic talks progress.