Oil Jumps As Trump Says Mulling Restart Of Project Freedom, Which Could Mean New Hormuz Clashes With Iran

Summary

• Trump mulls restarting Project Freedom in Hormuz and says forcibly retrieving ‘nuclear dust’ is still on the table, oil jumps on the headline.

• Iran Foreign Ministry: “Everything we proposed in the text was reasonable and generous.” However, US officials insist on their “unreasonable demands.“

• Saudi Arabia condemns Iran for its latest drone attacks targeting the UAE, Qatar, and Kuwait on Sunday.

• Qatari LNG tanker abruptly U-Turns in Hormuz chokepoint after earlier in the weekend an initial one made it through – an unprecedented first for a Qatari tanker of the war.

• Israeli reservist killed in Hezbollah drone attack on northern Israel as Lebanon war intensifies.

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Trump Might Fully Restart Project Freedom

Fox News is reporting that President Trump is considering renewing Project Freedom, pushing oil up. According to the developing story:

President Donald Trump has stated in an interview with Fox News that he is considering renewing Project Freedom, a military operation originally launched to secure the passage of commercial vessels through the Strait of Hormuz. This operation, involving significant U.S. naval assets, had been paused amid diplomatic efforts with Iran. The initial pause was influenced by diplomatic progress mediated by Pakistan, although recent developments suggest a potential escalation.

However, the reality is that the de facto US naval blockade has remained in place. The Iranians last week fired on US warships, which were escorting foreign vessels through the strait. Since then, there’s been an uneasy calm amid stalled negotiations. There’s really no movement on either side. Trump indicated in the fresh comments that all of this could be part of a larger operation, and strangely, a bit of a contradictory stance: he said of Iran’s “hardline leaders” that “they are going to fold” and that “I will deal with them until they make a deal”. Of course, the very label of ‘hardline’ would suggest the opposite.

The same Fox correspondent was told by Trump that forcibly retrieving Iran’s ‘nuclear dust’ is still on the table:

‘Unreasonable Demands’

It is clear there remains a huge gap between the positions of Washington and Tehran, after the past days saw proposals and counterproposals submitted via Pakistan, with the White House issuing its final response over the weekend, as President Trump called it ‘unacceptable’.

According to new Monday words from Iran’s Foreign Ministry Spokesman, Esmail Baghaei, “Everything we proposed in the text was reasonable and generous.” However, US officials continue to insist on their “unreasonable demands,” Baghaei stressed. He described that Iran’s demands for the war to stop, for the US to lift its blockade, and the release of Iran’s frozen assets, remain legitimate. Further, Tehran is demanding safe passage through the Strait of Hormuz, along with establishing security in the region and in Lebanon.

Senior Iranian military official Mohsen Rezaee to Tasnim: There Is No Clear Prospect for a Political Agreement With the United States

“Unfortunately, the US continues to insist on its one-sided view,” Baghaei added of the “reasonable, generous offer” built around Iran’s national interests. Iran has strongly suggested that the US is actually too influenced by driving Israeli interests, not American priorities.

But per WSJ, Washington’s focus remains on the nuclear issue, which Iran considers a non-starter in negotiations: “The president on Sunday said a multipage response that Iran sent to the U.S. proposal to end the war, which didn’t include commitments about Tehran’s nuclear program, was unacceptable,” the publication writes.

KSA Condemns Sunday Drone Attacks

Saudi Arabia has condemned and blasted Iran for its latest drone attacks targeting the UAE, Qatar, and Kuwait on Sunday, according to a new Foreign Ministry statement. The UAE had intercepted two drones coming from Iran, while Qatar said a drone attack hit a cargo ‌ship coming from Abu Dhabi in its waters. Kuwait, in turn, also said its air defenses had engaged hostile drones that entered its airspace. Kuwait, which borders Iran, has become a kind of front line for Iranian attacks and drone activity.

The Saudi Foreign Ministry reiterated its support and backing of all measures taken by Gulf states to protect their security and stability, saying, “The Kingdom demands an immediate halt to the blatant attacks on the territories and territorial waters of Gulf states, and to any attempt to close the Strait of Hormuz or disrupt international waterways.”

“It emphasizes the importance of adhering to the protection of international maritime routes in accordance with relevant international laws,” the ministry added.

Qatari LNG Tanker Abruptly U-Turns In Hormuz Chokepoint After Weekend Transit Breakthrough

Sunday’s response by Trump to Iran’s counterproposal pushed WTI crude futures nearly 3% higher to $98 a barrel as traders raised the war-risk premium tied to a prolonged disruption in the Strait of Hormuz.

Iran’s counterproposal dominated attention over the weekend, but shipping activity in the region also drew focus after Bloomberg reporter Stephen Stapczynski cited vessel-tracking data showing that an LNG tanker successfully passed through the Strait of Hormuz without incident.

The shipment marked the first time Qatar exported LNG through the strait since the war began ten weeks earlier. The tanker later docked in Pakistan. By Monday morning, Stapczynski reported that another fully loaded LNG tanker, “Mihzem,” was approaching the waterway. “Another Qatar LNG shipment is nearing the Strait of Hormuz, bound for Pakistan,” Stapczynski wrote on X. He added, “Pakistan is dealing with a gas shortage, and has negotiated with Iran for several LNG shipments. If successful, this would be the second LNG cargo to transit Hormuz for Pakistan in a few days.”

Stapczynski’s X post and report about the second Qatar LNG tanker attempting to transit the maritime chokepoint came early Monday. By 0700 ET, new ship-tracking data showed that the Mihzem abruptly reversed course roughly 20 miles before reaching Hormuz Island.

Tanker Leaking

There is a large oil tanker in the Strait of Hormuz spotted leaking a trail of oil, after a potential hostile strike. The incident, picked up by satellite monitoring, also comes amid reports of a large oil slick near Kharg Island; however, the Iranians have denied that the Kharg incident is a large-scale leak or oil slick.

Here’s what Tanker Trackers has commented on the below open sources satellite data and imagery (first struck on May 4):

The VLCC supertanker you see in the video below is BARAKAH (9902615). She is owned by UAE’s Abu Dhabi National Oil Company (ADNOC); the country’s state-owned oil & gas producer. BARAKAH was struck by Iranian drones on 2026-05-04, which is when we found her in this state on satellite imagery for clients. She’s empty of oil cargo following a secret transfer she had to conduct east of UAE to another tanker. She was struck once heading back west to fetch more oil. ADNOC condemned the attacks.

Netanyahu Holds Security Meeting Amid Lebanon Escalation

Prime Minister Benjamin Netanyahu is convening a high-level security meeting in his office in Jerusalem on Monday, according to The Times of Israel. The meeting comes after President Trump rejected Iran’s response to his ceasefire proposal, and ahead of direct Israel-Lebanon talks in Washington later this week. The Lebanon front has intensified, and IDF warplanes have heavily bombed not only southern Lebanon but also the Beirut suburbs over the last few days. Hezbollah drone attacks have become increasingly deadly in the meantime, with many serious injuries, but also this latest:

An IDF reservist was killed in a Hezbollah drone attack in northern Israel, the Israel Defense Forces said on Monday. The slain soldier was named as Warrant Officer (res.) Alexander Glovanyov, 47, a driver in the Transport Center’s 6924th Battalion, from Petah Tikva.

The attack took place around 4 p.m. on Sunday, when several explosive-laden drones launched by Hezbollah struck in Israeli territory near Manara, close to the border with Lebanon. One of the drones killed Glovanyov, according to an IDF probe.

Iran Still Wants Comprehensive Deal to Include Lebanon

Responsible Statecraft writes, “No new developments on the Lebanese front give reason for optimism that this round will yield an agreement that two prior rounds did not. The Trump administration, however, has an incentive to push for an agreement because of President Trump’s need to extract himself and the United States from the impasse involving the Strait of Hormuz.”

“The fighting on the Lebanese front since then has been as one-sided in the resulting death and destruction as Israeli combat with Palestinians,” the publication observes. “The Israeli assault has killed 2,700 people in Lebanon, while Israeli fatalities have been 18 military personnel and two civilians. At the height of the offensive, more than a million people — about a fifth of Lebanon’s population — were displaced, and most remain so. Israeli forces have destroyed entire villages in southern Lebanon.”

Iran continues to insist that any broader Iran war truce must encompass Lebanon as the conflict there flows out of the one in the Persian Gulf region. Al Jazeera, meanwhile, reports on the latest Monday: “Israel’s bombardment of Lebanon continues as Hezbollah claims more attacks on Israeli troops. The Lebanese Health Ministry says Israeli attacks in the past 24 hours have killed 51 people, including two medical workers.”