European stocks subdued as U.S. begins new effort to reopen Strait of Hormuz

European stocks were subdued as the United States began a new effort to reopen and secure the Strait of Hormuz, but the biggest market reaction continued to show up in oil and shipping rather than in a sharp move in equities.

Reuters reported that European shares were little changed as investors assessed the implications of the operation for energy markets and inflation. The new mission, called Project Freedom, is designed to restore freedom of navigation through one of the world’s most important shipping lanes.

CENTCOM said on May 3 that U.S. forces would begin supporting the operation on May 4. The official statement said the mission would include guided-missile destroyers, more than 100 land- and sea-based aircraft, multi-domain unmanned platforms and about 15,000 service members.

AP reported that U.S. forces had already begun safeguarding commercial traffic and clearing mines in key shipping lanes. MarketWatch and Reuters both said the wider market response remained cautious, with oil prices sensitive to the risk of disruption even as European equities stayed relatively flat.

The latest reporting suggests the main immediate effect is still uncertainty over shipping and inflation rather than a dramatic equity selloff. The next test is whether the operation stabilizes traffic through the strait or whether tensions in the region keep markets on edge.