TEHRAN, Iran - U.S. Central Command (CENTCOM) forces are in the early stages of Project Freedom, an initiative launched Monday by U.S. President Donald Trump to support merchant vessels seeking to transit through the Strait of Hormuz.

"A quarter of the world's oil trade at sea and significant volumes of fuel and fertilizer products are transported through the strait," a statement issued Monday by Central Command said.

"Our support for this defensive mission is essential to regional security and the global economy as we also maintain the naval blockade," Adm. Brad Cooper, CENTCOM commander, said. Iran has reacted strongly to the initiative, insisting it is in control of the Strait and will continue to be.

Separately, the Iranian Revolutionary Guards on Monday claimed they fired two missiles at a U.S. ship after it failed to heed a warning not to enter the Strait. The U.S. Central Command swiftly denied the claim. "No U.S. Navy ships have been struck. U.S. forces are supporting Project Freedom and enforcing the naval blockade on Iranian ports," a post on X said.

U.S. military support to Project Freedom includes guided-missile destroyers, over 100 land and sea-based aircraft, multi-domain unmanned platforms, and 15,000 service members.

"As a first step, two U.S.-flagged merchant vessels successfully transited through the Strait of Hormuz and are safely headed on their journey," a separate X post by Central Command on Monday said.

Oil prices surged, and the U.S. dollar strengthened on Monday. Stocks dived across the globe with the Dow Jones industrial index diving 557 points. The UAE on Monday condemned strikes on an ADNOC ship, which was struck by two drones as it transited through the Strait of Hormuz.

The UAE Foreign Ministry said the targeting of commercial shipping and using the Strait of Hormuz as a tool of economic coercion or blackmail represents acts of piracy by Iran's Revolutionary Guard Corps, and constitutes a direct threat to the stability of the region, its peoples, and global energy security, WAM, the official UAE news agency, reported. 

There is concern that the clashes at the Strait, and the failure of Iran and the U.S. to agree on a deal to end the war permanently, are putting the 4-week-old fragile ceasefire at risk. At 4:58pm and 7:01pm local time on Monday, the UAE issued alerts to residents to take shelter due to potential missile threats. "Due to the current situation, missile threats, immediately seek a safe place in the closest secure building, steer away from windows, doors, and open areas. Await further instructions," the alerts said. However, minutes later, the all-clear was given. Reports continued to come in during the early evening. 

The UAE Ministry of Defence later confirmed UAE air defence systems engaged 12 ballistic missiles, 3 cruise missiles, and 4 UAV's launched from Iran on Monday, resulting in 3 moderate injuries.