US official: Preparation to resume Operation Freedom to reopen the Strait are incorrect

Al Jazeera is saying a US official told them that reports about preparation to resume Operation Freedom to reopen the Strait of Hormuz are incorrect “Operation Freedom” (sometimes also referred to in reports as “Project Freedom”) is the Trump administration’s military-backed effort to reopen and protect commercial shipping through the Strait of Hormuz after Iran disrupted traffic through the critical oil chokepoint. The operation reportedly involves U.S. naval escorts, fighter aircraft, missile defense systems, and coordination with Gulf allies to help commercial ships move safely through the region. For oil prices, the impact depends on how the market interprets the operation: Initially bearish for oil if traders believe the operation successfully restores oil flows through the Strait of Hormuz. Roughly 20% of global oil supply moves through that waterway, so reopening it reduces fears of shortages and supply disruptions. Potentially bullish for oil if the operation escalates military tensions between the U.S. and Iran. Markets worry about missile attacks, drone strikes, damaged tankers, or a broader regional conflict that could threaten supply. The current reaction seems to more bearish if Operation Freedom does not go into effect. The price of crude oil is back down to $95 in volatile trading. This article was written by Greg Michalowski at investinglive.com.