Oil Choppy, Asia Stocks Mixed on Trump's Plan to "Free" Ships in Strait of Hormuz

By Kimberley Kao

Oil prices were choppy while Asian equity markets were mixed on Monday, as investors assessed President Trump's plan to start guiding commercial ships out of the Strait of Hormuz, where they have been trapped by the war between the U.S. and Iran.

"Countries from all over the World...have asked the United States if we could help free up their Ships, which are locked up in the Strait of Hormuz," Trump wrote on Truth Social on Sunday. "For the good of Iran, the Middle East, and the United States, we have told these Countries that we will guide their Ships safely out of these restricted Waterways, so that they can freely and ably get on with their business."

Dubbed by Trump as "Project Freedom," the initiative will begin on Monday morning, Middle East time, Trump wrote. Around one-fifth of the world's oil is transported through the Strait of Hormuz.

Trump's announcement comes as he said he would likely reject an Iranian proposal to end the war, in the latest sign the U.S. and Iran have hit an impasse on cease-fire talks.

Oil futures were choppy. Front-month West Texas Intermediate crude oil futures were last 0.7% lower at $101.16 a barrel and front-month Brent crude oil futures fell 0.5% to $107.59 a barrel, ICE data showed.

Iran's plan, although likely to be rejected by Trump, helped quell the most acute risks, bringing Brent prices down to around $108, Vishnu Varathan, head of macro research for Asia excluding Japan at Mizuho Securities (Singapore), said in a note. However, "the threat of prolonged, war-induced 'oil shock'...[is] not put to bed", he said.

The strait blockade is likely to be protracted as Trump looks set to pressure Iran further, which could lift oil and bond yields in tandem, he added.

Stock markets across Asia-Pacific were mixed. Australia's S&P/ASX 200 benchmark index fell 0.5%, while South Korea's Kospi rose 2.6% to hit a record high.

Markets in Japan and China are closed for public holidays.

Spot gold was 0.1% lower at $4,609.64 a troy ounce. Bitcoin was 0.6% lower, but remained above $78,000.

Write to Kimberley Kao at kimberley.kao@wsj.com

(END) Dow Jones Newswires

May 03, 2026 21:35 ET (01:35 GMT)