Confusion reigned after Iran claimed it had hit two US warships attempting to escort US-flagged tankers through the Strait of Hormuz on May 4, while the US said two US tankers had made the passage.

The United States launched Operation Project Freedom in the Strait of Hormuz on May 4, deploying guided-missile destroyers, more than 100 land and sea-based aircraft, unmanned platforms and approximately 15,000 service members in an effort to restore commercial shipping through the world's most critical oil chokepoint.

Approximately 15,000 US servicemen; destroyers and over 100 aircraft will be involved in Operation Project Freedom to free ships blocked in the Strait CENTCOM said.

"US military support to Project Freedom will include guided-missile destroyers, over 100 land and sea-based aircraft, multi-domain unmanned platforms, and 15,000 service members," CENTCOM said in a statement on the X social network.

By the middle of the day Iran claimed it had hit two ships with missiles and broadcast on open channels that any unauthorised ship entering the strait would be attacked.

CENTCOM denied the reports of the attack, which would have been the first missiles to hit a US warship, and counter claimed that it had successfully escorted two US flagged ships through the narrow waterway. "No US Navy ships have been struck," the command said in an official statement, NBC News reported.

US Central Command confirmed that two US-flagged merchant vessels had successfully transited the Strait of Hormuz as part of Operation Project Freedom.

"American forces are actively assisting efforts to restore transit for commercial shipping," CENTCOM said. US Navy guided-missile destroyers are "currently operating in the Arabian Gulf after transiting the Strait of Hormuz in support of Project Freedom,” NBC News reported.

Treasury Secretary Scott Bessent sought to frame the operation in maximalist terms. "We are saying the Iranians do not have control of the strait. We have absolute control of the strait. We have blockaded the ships going into or out of Iranian ports," he told Fox News.

The showdown caused a storm on social media that immediately mudded the waters. In one post, allegedly by the Iranian Revolutionary Guard Corps (IRGC) that controls the strait, appeared to show a US warship being hit by a missile. However, it later became clear it was old footage broadcast by CNN in 2016 of the USS Thach, a retired ship, used during a joint military exercise off the coast of the Hawaiian Islands being used as target practice.

To date US warships have kept well away from the Strait, fearing attacks by a swarm of cheap and plentiful Iranian missiles and drones secreted in the cliff along the northern shore of the passage. Costing well over $10bn each the ships are extremely expensive compared to the $10,000 Iran’s drones cost, heavily weighting the cost-to-kill ratio in Iran’s advantage. However, US President Donald Trump has clearly become increasingly frustrated by the US navy’s inability to open the strait to traffic, which said in the first week of the war it was “too dangerous to traverse.”

At the time of writing the situation remains extremely confused in the midst of the fog of war, however, oil markets immediately reacted. The price of oil tumbled to below $100 a barrel after the White House announced the launch of Operation Project Freedom, but rebounded again as soon as the reports of the missile strike broke.

It remains unclear if any US naval ships have entered the Strait at all. According to Axios correspondent Barak Ravid, citing two US officials, the operation will not necessarily include US Navy ships escorting commercial vessels — a significant qualification.

"One of the officials said US Navy ships will be 'in the vicinity' in case they need to prevent Iran's military from attacking commercial ships," Ravid reported. The Wall Street Journal separately confirmed that escort missions are not part of the operation's scope; instead, the US Navy will provide commercial ships with information on the best maritime lanes through the strait, particularly those not mined by Iran.

About 800 commercial vessels are believed to be stranded because of the combined effect of Iran's restrictions on the strait and the US naval blockade of Iranian ports, which has been in force since April 13. A quarter of the world's oil trade passes through the strait, along with significant volumes of fuel and fertiliser.

Ebrahim Azizi, head of the Iranian parliament's National Security Commission, warned that any US interference in the Strait of Hormuz would be considered a violation of the ceasefire in effect since April 8, TASS reports.

"The Strait of Hormuz and the Persian Gulf would not be managed by Trump's delusional posts!" he said. The commander of Iran's Khatam al-Anbiya Central Headquarters said any foreign military force, "especially the invading American army," would be attacked if they tried to approach or enter the strait.

Overall, oil markets remained sceptical that the operation represented a fundamental change. Brent crude fell modestly on the announcement before steadying, with traders taking a wait-and-see approach. US gasoline prices have risen from $2.98 a gallon before the war to $4.46 on May 4, with analysts warning that prices could reach $5 a gallon — rivalling the all-time high of $5.02 in June 2022 — if the strait does not reopen within the next month.

Trump framed the operation as a humanitarian gesture for countries not party to the conflict. "These are Ships from areas of the World that are not in any way involved with that which is currently taking place in the Middle East," he wrote on Truth Social. "I am fully aware that my Representatives are having very positive discussions with the Country of Iran, and that these discussions could lead to something very positive for all."

CENTCOM commander Admiral Brad Cooper said: "Our support for this defensive mission is essential to regional security and the global economy as we also maintain the naval blockade."