Trump’s ‘Project Freedom’ Collapses as Iran Rejects U.S. Demands

President Donald Trump’s military initiative to reopen the Strait of Hormuz, codenamed Project Freedom, was canceled within days of its announcement.

On Sunday night, Trump announced the U.S. military would guide ships out of the Persian Gulf, where they had been trapped since the U.S.-Iranian war closed the Strait of Hormuz a month earlier. By Tuesday night, he declared the operation was “paused” and that the U.S. would maintain its blockade of Iranian ports.

The next morning, Trump sent a contradictory statement: the blockade would be lifted “if Iran agrees to give what has been agreed to”—a condition widely seen as unlikely. He also threatened to respond with “bombing at a much higher level and intensity than it was before” if negotiations failed.

U.S. officials told Axios on Wednesday morning that they were prepared to accept a framework for new peace talks. Under the proposed deal:

• Iran would gradually reopen the strait.
• The U.S. would lift its blockade of Iranian ports.
• Both sides would have 30 days to negotiate a detailed agreement.
• The final deal would restrict Iran’s nuclear program in exchange for lifting U.S. economic sanctions.

Notably absent from the proposed terms was any mention of disarming Iran’s missile forces—a key war goal for the Trump administration.

These were the same terms Iran had proposed the previous week. Trump had rejected them just before announcing Project Freedom.

Escalation and Deadlock

In the days since Trump’s announcement, tensions escalated:

• The U.S. Navy escorted a ship through the strait and sank several Iranian speedboats that were harassing commercial vessels.
• Iran bombed an oil export terminal in the United Arab Emirates.
• Iran launched a cruise missile at a cargo ship attempting to pass through Hormuz, injuring several Filipino sailors.
• Commercial shipping companies did not trust U.S. assurances: zero ships transited the strait on Tuesday, and dozens sailed away from the region entirely.

“The security of shipping and energy transport has been jeopardized by the United States and its allies by violating the ceasefire and imposing a blockade.”

— Mohammad Bagher Ghalibaf, Speaker of Iran’s Parliament and the country’s chief negotiator, commenting on the start of Project Freedom.

After the initiative collapsed, Iran’s navy announced it would allow “safe, stable passage” through the strait under “new protocols.” A new Iranian government website was also launched, where ship owners could reportedly pay ransom to avoid harassment.

Trump’s Frustration and Iran’s Defiance

Despite publicly urging Americans to be patient with the war, Trump has shown growing impatience. From the war’s beginning through the current ceasefire, he has repeatedly suggested that Iran would “fold instantly” within days if faced with the right pressure.

Instead, Iranian leaders have responded by escalating their own actions. The result has left the U.S. with a choice: either counter-escalate at increasing cost or make concessions to Iran—something Trump had vowed not to do.

After early April peace talks failed to produce the desired outcome, Trump ordered the U.S. Navy to turn back all shipping out of Iranian ports. The goal was twofold: cut off Iran’s export revenues and force Tehran to the negotiating table. But with Iran rejecting the U.S. terms and continuing its attacks, the strategy has backfired.