Covert U.S. Operation Reopens Strait of Hormuz, Boosting Global Oil Supply

A previously undisclosed U.S. military initiative, referred to as “Project Freedom,” has facilitated the safe passage of more than 200 commercial vessels carrying over 100 million barrels of oil through the Strait of Hormuz during the past month, according to statements released today by President Donald Trump.

The operation relied on communication and coordination with commercial shippers rather than direct naval escorts. Vessels transited without lights or transponders, while Iranian radar capabilities in the region had been previously disabled, President Trump stated. “Nobody knows about it? Iran—until right now,” he said in remarks disclosed today.

The volume of oil moved—approximately 100 million barrels over 30 days—translates to an added supply of roughly 3 million barrels per day. With global oil supply and demand balancing near 100 million barrels per day, this represents an approximate 3% increase in worldwide availability. Analysts note this additional supply has likely helped prevent crude prices from escalating toward $150 or $200 per barrel.

Market data reflects the impact: West Texas Intermediate crude, which peaked near $113 per barrel earlier this year, traded around $90 today—a decline of nearly 20%. According to AAA’s national survey, the average U.S. gasoline price has fallen to approximately $4.15 per gallon, down almost 10% from its May peak of $4.56. Nearly half of U.S. states now report average gasoline prices below $4 per gallon.

In related economic updates, the latest Consumer Price Index showed a 4.2% year-over-year increase overall, with the core rate—excluding food and energy—at 2.9%. Energy prices rose 104% annually over the past three months, including a 250% surge in gasoline costs, while goods prices excluding food and energy remained essentially flat.

President Trump characterized current energy costs as “a modest price to pay to rid the world and the Middle East from the scourge of radical Islam in Iran,” adding that he expects the conflict to conclude soon, leading to significantly lower oil and gasoline prices.

Broader economic indicators were also highlighted, with references to growth in manufacturing, business investment, construction, corporate profits, productivity, and equity markets. Policies cited as contributing factors include lower taxes, reduced regulatory burdens, expanded domestic energy production, and advances in artificial intelligence. U.S. crude production currently stands at 13.6 million barrels per day, and the economy is described as expanding at nearly 4% annual GDP growth with low unemployment.

Looking ahead, attention turns to the Federal Reserve’s upcoming policy meeting. President Trump expressed hope that Kevin Warsh, referenced as the incoming Fed chair, would introduce updated economic models and communicate that strong growth and temporary energy price fluctuations do not inherently drive persistent inflation.