Saudi, Kuwait Lift Bans; Project Freedom May Restart

Saudi Arabia and Kuwait lifted restrictions this week on U.S. military use of bases and regional airspace, clearing the way for a potential restart of Project Freedom, the U.S.-led operation to escort commercial vessels through the Strait of Hormuz.

Project Freedom launched earlier this week after a rise in attacks on ships transiting the narrow waterway that handles about one-fifth of global oil trade. The initial phase used destroyers, fighter jets, helicopters and drones to escort merchant vessels and guided two U.S.-flagged ships out of the Persian Gulf before the operation was paused when Saudi and Kuwaiti access was restricted.

Iranian forces struck U.S. warships and non-U.S. commercial vessels with cruise missiles and drones during the period of heightened tensions. Iranian forces also launched a 15-missile attack on an energy facility in the United Arab Emirates’ Fujairah region. A Chinese-owned tanker was struck near the strait and its deck caught fire; reports of crew casualties have not been confirmed.

Saudi officials described themselves as “blindsided” by the initial operation, citing unclear rules of engagement and the risk of Iranian retaliation on Saudi territory. Roughly 36 hours after the U.S. began the escorts, Riyadh withdrew support; Kuwait closed its airspace to U.S. military flights. Those restrictions left U.S. forces without what Pentagon leaders described as the defensive umbrella needed to protect ships transiting the strait, prompting the president to pause the mission to pursue a diplomatic opening. The president credited China and Pakistan with mediation efforts during that pause.

Officials have not disclosed the terms that persuaded Saudi Arabia and Kuwait to reverse their bans. Pentagon planners have indicated a restart would funnel commercial traffic through a narrow, mine-cleared corridor under heavy U.S. protection. Defense Secretary Pete Hegseth characterized the proposed posture as a “red, white and blue dome.”

U.S. equity indexes fell after reports that the president was preparing to resume Project Freedom, reflecting investor concern about renewed risk to Middle East shipping and energy supplies. No timeline for a formal restart has been announced.

The episode exposed divisions among Gulf states over how to respond to Iranian actions and U.S. military initiatives. The United Arab Emirates has withdrawn from OPEC and is reportedly considering leaving the Arab League. Saudi Arabia has secured a pipeline arrangement intended to route about half of its oil exports through the Red Sea to reduce reliance on the Strait of Hormuz.

U.S. officials say the next phase will test whether military escorts can stabilize shipping and energy markets or whether further Iranian responses will escalate the situation. The level of Gulf cooperation and the details of rules of engagement will shape how long any protective corridor can be maintained.