The United States and Iran have opened a direct communication line in the Strait of Hormuz, the narrow waterway through which roughly one-fifth of the world’s oil supply passes every day.

The announcement came on June 22, following negotiations in Burgenstock, Switzerland, mediated by Qatar and Pakistan. The communication channel is part of a broader 14-point Memorandum of Understanding covering Iran’s nuclear program and regional security concerns.

What the deal actually covers

The core purpose of the communication line is straightforward: prevent maritime incidents and miscommunication in one of the planet’s most strategically sensitive waterways.

Iranian Parliament Speaker Mohammad Bagher Ghalibaf confirmed that the Strait will remain under Iranian administration, but governance will adhere to international laws.