Trump Pauses 'Project Freedom' as Iran Talks Reportedly Progress; Oil Falls, Markets Rally

President Donald Trump said he is pausing “Project Freedom,” the U.S. naval mission launched only days ago to help guide commercial ships through the Strait of Hormuz, and markets quickly treated the move as a sign of easing tensions. Oil prices fell on the announcement, while U.S. stock futures, global equities and major cryptocurrencies moved higher in a broader risk-on trade.

In a Truth Social post late May 5 U.S. time, transcribed by media outlets early May 6 UTC, Trump said “Project Freedom … will be paused for a short period of time …” He said the decision was “based on the request of Pakistan and other Countries … and, additionally, the fact that Great Progress has been made toward a Complete and Final Agreement with Representatives of Iran.” Multiple outlets have described Pakistan as a mediator or facilitator in the talks Trump referenced.

The clearest immediate market reaction came in crude. Major market reporting showed oil falling by single-digit percentages, not the far steeper drop claimed in some social media posts. During the May 6 session, Brent crude traded around $109.87, down about 4%, while U.S. benchmark West Texas Intermediate was around $102.27, down about 3.9%. The move reflected a lower geopolitical risk premium as traders reassessed the chance of supply disruption through the Gulf.

Other markets also turned more optimistic. U.S. stock futures strengthened after Trump’s post, and broader global equity indexes rose on the same de-escalation signal. Cryptocurrencies joined the rally. Bitcoin traded in the $81,000 to $82,000 range on May 6, with one widely cited snapshot near $82,320, while Ether changed hands in the low $2,400s. The gains fit the broader pattern of investors moving back into risk assets as fears around a wider confrontation appeared to ease.

The Strait of Hormuz, between the Persian Gulf and the Gulf of Oman, is one of the world’s most important oil chokepoints, meaning any threat to shipping there can quickly lift crude prices. Project Freedom was launched around May 4 after conflict-related disruptions, with the stated aim of helping commercial vessels transit the waterway. The administration had presented the effort as limited rather than open-ended.

That framing matters now. The Pentagon had already described the mission as temporary and defensive, not a permanent escalation in U.S. military posture. Defense Secretary Pete Hegseth said, through Defense Department reporting, that “Project Freedom is defensive in nature, focused in scope and temporary in duration.” Trump’s pause does not amount to confirmation of a final agreement with Iran. But it does mark a rapid de-escalation update in a mission that had only just begun, and markets responded accordingly.