Oil Falls as US Outlines “Project Freedom” Plan

Key Moments

WTI futures traded down 0.28% at $101.65 per barrel, while Brent eased 0.06% to $108.10.
President Trump announced “Project Freedom” to assist vessels transiting the Strait of Hormuz, a plan Iran has rejected.
The S&P 500 rose 0.3% to a record 7,230.12, supported by strong corporate earnings led by Apple.

Oil Prices Edge Lower as Traders Weigh U.S. Naval Plan

Crude futures traded slightly in the red ahead of the European open as market participants assessed comments from U.S. President Donald Trump on a new effort to facilitate vessel movements through the Strait of Hormuz, a proposal that Iran has dismissed.

At the time of writing, U.S. benchmark West Texas Intermediate (WTI) crude declined 0.28% to $101.65 per barrel. Brent crude, the international pricing benchmark, slipped 0.06% to $108.10 per barrel.

Market sentiment is heavily influenced by expectations for progress toward ending the war with Iran and resolving the congestion at the Strait of Hormuz, a critical chokepoint for global oil flows.

Stephen Innes of SPI Asset Management wrote in a commentary that the oil market “remains the fulcrum, with hundreds of tankers, bulk carriers, and cargo ships still stranded across the Gulf, idling as storage constraints force producers to shut … production simply because there is nowhere left to store it.”

“Project Freedom” Details and Military Deployment

President Trump stated that an initiative he termed “Project Freedom” would commence Monday morning in the Middle East. According to U.S. Central Command, the operation will involve guided-missile destroyers, more than 100 aircraft, and 15,000 service members. The Pentagon did not immediately provide clarification on the specific deployment structure or operational roles of these assets.

Global Market Snapshot

Asia-Pacific Equities

Equity markets in the Asia-Pacific region showed mixed performance in overnight trading. Hong Kong’s Hang Seng index advanced 1.4% to 26,135.47.

Mainland Chinese and Japanese markets were closed for “Golden Week” holidays.

In Australia, the S&P/ASX 200 slipped 0.3% to 8,704.70.

Technology shares drove strong gains in South Korea, where the Kospi climbed 3.8%. Taiwan’s Taiex posted a 4.2% surge.

Index	Region/Market	Move	Level
Hang Seng	Hong Kong	+1.4%	26,135.47
S&P/ASX 200	Australia	-0.3%	8,704.70
Kospi	South Korea	+3.8%	–
Taiex	Taiwan	+4.2%	–

U.S. Equity Performance

On Friday, U.S. equities delivered a mixed but broadly constructive session. The S&P 500 advanced 0.3% to a fresh all-time closing high of 7,230.12, marking its fifth consecutive weekly gain.

The Dow Jones Industrial Average declined 0.3% to 49,499.27, while the Nasdaq Composite rose 0.9% to close at a record 25,114.44.

Apple led the market rally after posting earnings that exceeded expectations. Given its large index weighting, its 3.3% gain was the dominant contributor to the S&P 500’s rise.

Index	Move	Close
S&P 500	+0.3%	7,230.12 (record)
Dow Jones Industrial Average	-0.3%	49,499.27
Nasdaq Composite	+0.9%	25,114.44 (record)

Earnings Momentum Supports U.S. Stocks

Over the long term, equity valuations tend to track the trajectory of corporate earnings, and U.S. companies have been reporting stronger-than-anticipated results for the first quarter of 2026. This has occurred despite the drag on sentiment from the war with Iran and elevated energy prices affecting U.S. household confidence.

Just over one-quarter of S&P 500 constituents have released quarterly results so far, with 84% surpassing analysts’ profit forecasts, according to FactSet. The index is currently projected to deliver approximately 15% year-over-year earnings growth.

Oil Price Path Remains Key Macro Risk

The main source of uncertainty for the global outlook is the direction of crude prices in light of the conflict with Iran. Oil futures advanced last week as investors grew more concerned that a protracted closure of the Strait of Hormuz could keep tankers trapped in the Persian Gulf and restrict deliveries to end users.

Before the war, Brent crude traded at just over $70 per barrel. The subsequent price spike has supported quarterly earnings for the two largest U.S. oil producers, which posted profits above analyst expectations.

However, share prices for Exxon Mobil fell 1% and Chevron declined 1.4% as crude prices pulled back on Friday and both companies reported year-over-year declines in net income.

Currency Market Moves

In early Monday trading, the U.S. dollar strengthened against the Japanese yen, rising to 157.18 yen from 156.80 yen. The euro weakened modestly versus the dollar, slipping to $1.1724 from $1.1746.