Investing.com– U.S. President Donald Trump said on Tuesday the U.S. will pause an operation aimed at restoring commercial shipping through the Strait of Hormuz, and that a deal with Iran was close.
But the president also said a naval blockade against Iran will remain in effect.
Trump said that “great progress” was made towards a “complete and final agreement” with Iran, and that the Hormuz operation, called Project Freedom, “will be paused for a short period of time to see whether or not the Agreement can be finalized and signed.”
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There was no official response from Iran on Wednesday.
Trump’s comments come after the launch of Project Freedom earlier this week sparked a military response from Iran, with Tehran seen attacking several ships in the channel, while also launching missiles at the United Arab Emirates.
Defense Secretary Pete Hegseth said earlier on Tuesday that Washington was not seeking to re-escalate tensions with Tehran, and that Project Freedom was a temporary measure.
Hegseth also claimed that a ceasefire remained in place despite renewed military action in Hormuz.
The U.S. said it had destroyed several Iranian small boats, although Tehran contested the number and nature of the vessels.
Trump had launched Project Freedom as an attempt at restoring commercial shipping through Hormuz. Iran effectively blocked the channel during the onset of the war.
The U.S. had then responded by enacting a naval blockade against Iran, attempting to economically pressure Tehran into accepting a deal.
Iran’s Foreign Minister, Abbas Araghchi, earlier this week acknowledged some progress in Pakistan-brokered talks, but warned the U.S. against a renewed military clash in Hormuz.
The shipping lane has become a key point of focus in the war, given that its closure cut off roughly 20% of the world’s oil supply.
Oil prices fell sharply following Trump’s comments, with sinking below $110 a barrel as markets looked to an end to the Iran conflict and supply disruptions.
Ship passages through the Strait of Hormuz still remained close to nil, although shipping giant Maersk said one of its ships passed through the channel under U.S. military protection earlier this week.