Project Freedom, the US military operation to safeguard shipping in the Strait of Hormuz, was paused just a day after its launch, signaling a strategic recalibration. President Trump cited “progress in diplomatic talks” with Iran and Pakistan’s mediation efforts as reasons for the pause. Markets reacted swiftly: oil prices dipped 2% as investors priced in reduced near-term tensions. Abbas Araghchi, Iran’s foreign minister, met with China’s Wang Yi in Beijing, underscoring Tehran’s deepening ties with Beijing amid US pressure.

China, a key Iranian ally, has been urged by Washington to leverage its influence to ensure the strait remains open for oil shipments. The move highlights Washington’s pivot from military posturing to diplomacy, though uncertainties linger over Iran’s compliance with de-escalation demands. Experts note the strait’s critical role in global oil flows, with 20% of the world’s supply passing through it. Oil prices, currently at $68 a barrel, reflect market optimism but remain volatile ahead of potential negotiations.