US President Donald Trump has paused Project Freedom just one day after its launch, leaving the shipping industry — which had barely had time to respond to the initiative aimed at reopening the Strait of Hormuz— once again in the dark.
In a post on Truth Social late on Tuesday, Trump said the pause was "based on the request of Pakistan and other countries" and cited "tremendous military success" during what he described as a "campaign against the country of Iran".
He added that "great progress has been made toward a complete and final agreement with representatives of Iran".
The US blockade against Iran-inked ships would remain in full force and effect, while negotiations continue to see "whether or not the agreement can be finalised and signed", Trump said.
One Asia-based shipping executive said he was unsurprised by the reversal. "This is clearly another TACO," he said, using industry shorthand for "Trump Always Chickens Out".
Iran dismissed Trump's framing of events. Tasnim, a news agency affiliated with the Islamic Revolutionary Guard Corps, said Trump was "trying to somehow cover up the failure of his plan".
The pause came just hours after shipowners, insurers and senior industry officials told Lloyd's List that the initiative had failed to provide sufficient clarity for vessels to safely transit the Strait of Hormuz.
On Tuesday, US Defense Secretary Pete Hegseth had declared the strait's shipping lane "clear" after two commercial vessels transited under US protection on Monday, but shipowners said few had moved and the initiative had done little to change the situation.
The Strait of Hormuz remained largely empty on Tuesday, with no traceable commercial transits recorded.
Trump's reference to Pakistan reflects the country's ongoing mediation efforts between Washington and Tehran.
Last week, 22 Iranian crew members from the seized containership Touska were evacuated to Pakistan, with Islamabad describing the return as a "confidence-building measure".
The outlook for the strait's reopening remains unclear.
Some shipowners see Iranian Foreign Minister Abbas Araghchi’s visit to Beijing on Wednesday as a positive signal, at least for China-linked vessels. But an executive from one large Chinese shipping company cautioned against excessive optimism, noting that passage through Hormuz and the ships stranded in the Gulf had become key bargaining chips for Tehran.
Another Chinese shipowner, who has a few ships stranded within the Middle East Gulf, noted that President Trump is set to visit Beijing on May 14–15 for a summit with Chinese President Xi Jinping. “We’re keeping an close eye on whether the two leaders can reach any consensus on Iran.”
The US has been seeking to bring China into the diplomatic effort. On Monday, Treasury Secretary Scott Bessent urged Beijing to pressure Iran into reopening the strait, noting that China purchases 90% of Iranian energy exports.
"Let's see them step up with some diplomacy and get the Iranians to open the strait," Bessent said in a Fox News interview.
