India’s National Security Adviser Ajit Doval voiced cautious optimism on June 23, 2026, about a freshly inked agreement between the US and Iran that could reshape global energy flows. The memorandum of understanding, formally known as the Islamabad MOU, aims to reopen the Strait of Hormuz for commercial shipping without tolls for an initial 60-day period.
The waterway handles roughly 20% of the world’s petroleum supply.
What the deal actually says
The MOU was agreed upon around June 17, 2026, and emerged from the wreckage of the 2026 Iran war. Its core mechanic is straightforward: commercial vessels get toll-free passage through the Strait of Hormuz for 60 days, starting from the agreement’s effective date.
But the deal goes beyond just reopening a shipping lane. It includes provisions for the cessation of military operations, sanctions relief, and economic incentives. There’s also a planned negotiation window targeting Iran’s nuclear program.
