Edited by
FT reporters
Steff Chávez
US will pause operations to ‘guide’ ships through Strait of Hormuz
US President Donald Trump has “paused” the military mission to guide commercial ships through the Strait of Hormuz, in a U-turn just one day after the operation began.
Trump said he wanted “to see” whether a diplomatic solution could be reached with Iran, citing progress in negotiations and a request from Pakistan, which has mediated between Washington and Tehran.
Trump wrote in a Truth Social post: “Based on the request of Pakistan and other Countries” and “the fact that Great Progress has been made toward a Complete and Final Agreement with Representatives of Iran, we have mutually agreed that . . . [Project Freedom] will be paused for a short period of time to see whether or not the Agreement can be finalized and signed”.
He added the US blockade of Iran “will remain in full force and effect”.
Ahead of the pause, the US military had said two American-flagged ships transited the strait successfully with its guidance. However, on Monday, the first day of the mission, US and Iranian forces exchanged fire.
Tehran launched cruise missiles at US warships and commercial vessels, and sent drones and fast-attack boats at merchant ships. The US shot down the missiles and drones, and sank six of the small boats.
- Share $US will pause operations to ‘guide’ ships through Strait of Hormuz on X (opens in a new window)
- Share $US will pause operations to ‘guide’ ships through Strait of Hormuz on Facebook (opens in a new window)
- Share $US will pause operations to ‘guide’ ships through Strait of Hormuz on LinkedIn (opens in a new window)
William Sandlund in Hong Kong
Stocks rally and oil falls on US de-escalation
Global markets rallied and oil prices fell on Wednesday on signs of de-escalation between the US and Iran over the Strait of Hormuz.
Brent crude, the international oil benchmark, slipped 1.7 per cent to $108 a barrel during morning trading in Asia. US oil fell 1.7 per cent to $100.58 a barrel.
Donald Trump announced late on Tuesday that the US would pause plans to guide commercial ships through the Strait of Hormuz. Chinese state media also announced that Iran’s foreign minister Abbas Araghchi was meeting Chinese foreign minister Wang Yi in Beijing.
Global equities rallied, with futures for the S&P 500 and Nasdaq 100 up 0.2 per cent and 0.5 per cent respectively. Futures for the Stoxx Europe 600 gained 0.7 per cent. South Korea’s Kospi led gains in Asia, adding 6 per cent, while mainland China’s CSI 300 index rose 1.5 per cent.
FT reporter
Iran’s foreign minister meets China’s Wang Yi
Iran’s foreign minister Abbas Araghchi has met Chinese foreign minister Wang Yi in Beijing, China’s state media said on Wednesday without giving further details.
Araghchi’s trip was announced on Tuesday by Iran’s foreign ministry, which said only that he would discuss international developments with Wang. China is a close partner of Iran.
US officials have called on China to do more to persuade Iran to open up the Strait of Hormuz. President Donald Trump is due to travel to China next week for a summit with President Xi Jinping.
Amelia Pollard in Beverly Hills
Griffin says Iran conflict still a ‘humanitarian crisis’
Ken Griffin said the thousands of casualties from the war in Iran amounted to a “humanitarian crisis”, warning that a drawn-out conflict could trigger a global recession.
“I don’t think the president has made his case publicly strong enough,” the billionaire founder of hedge fund Citadel said at the Milken conference in Beverly Hills on Tuesday, adding that he “applauded” the White House for trying to mitigate nuclear weapons in the Middle East.
If the war lasted several more months, Griffin said the energy shock that has already hit oil importers could spread globally, leading to serious economic consequences for the US.
Peter Wells in New York
Oil settles lower as fragile US-Iran ceasefire holds
The price of oil eased in the absence of a major flare-up in Middle East hostilities.
Brent crude, the international benchmark, settled 4 per cent lower to $109.87 a barrel on Tuesday. West Texas Intermediate, the US marker, dropped 3.9 per cent to $102.27.
Prices jumped on Monday following renewed military action around the Strait of Hormuz, with the US saying Tehran had launched cruise missiles at American warships and commercial vessels and that American forces had struck seven Iranian small boats. The United Arab Emirates on Monday said it had intercepted several missiles Iran fired towards it.
Monday’s flare-up came after the US said it was commencing efforts to guide commercial ships from various countries through the strait.
Abigail Hauslohner in Washington
US trying to establish ‘zone of transit’ in Strait of Hormuz, says Rubio
The US is trying to establish “a zone of transit” in the Strait of Hormuz as Washington continues its attempt to guide ships through the waterway while tensions with Iran simmer.
That zone would be “protected . . . and then allow ships who want to move, to move through there,” secretary of state Marco Rubio said at a White House news conference on Tuesday.
“That doesn’t happen in 12 hours,” he added. “It takes time to set up that bubble and gain that confidence, but that’s the goal.”
“Iran cannot be allowed to normalise this,” he said, referring to the Islamic republic’s control of the strait.
- Share $US trying to establish ‘zone of transit’ in Strait of Hormuz, says Rubio on X (opens in a new window)
- Share $US trying to establish ‘zone of transit’ in Strait of Hormuz, says Rubio on Facebook (opens in a new window)
- Share $US trying to establish ‘zone of transit’ in Strait of Hormuz, says Rubio on LinkedIn (opens in a new window)
Comments