US, Iran sign peace MoU; Hormuz hopes set sail

Energy supplies via the Strait to resume slowly after formal deal on Friday

- SHUBHANGI MATHUR, ASIT RANJAN MISHRA & DHRUVAKSH SAHA

The United States (US) and Iran have signed a memorandum of understanding (MoU) to settle a 108-day war, senior US officials said on Monday, adding that a signing ceremony would take place on Friday and shipping traffic in the Strait of Hormuz would gradually pick up.

The MoU has been signed by US President Donald Trump and Vice President JD Vance and Iranian parliament speaker Mohammad Bagher Qalibaf, Reuters reported, quoting a US official.

With this development, India is optimistic about a gradual resumption of energy supplies through the key shipping route — a development that could lower procurement and transportation costs.

Speaking at a briefing with reporters, the US official added that there will also be a signing ceremony on Friday, likely in Geneva. “You will see significant increase in traffic in the strait of Hormuz, actually starting already, and that will ramp up slowly over time,” said the official, speaking on the condition of anonymity.

Industry executives and experts, however, cautioned that normalisation of flows through the waterway could still take weeks, if not months.

Following the progress, the first India-bound liquefied natural gas (LNG) carrier, Disha, managed by a Shipping Corporation of India-led consortium, safely crossed the conflict-hit waterway on Monday. Carrying 62,370 metric tonnes of LNG, the vessel is expected to reach Dahej port in Gujarat on June 18.

Welcoming the development towards an interim agreement between the US and Iran, Prime Minister Narendra Modi said in a post on X: “India hopes that the implementation of this understanding will help restore peace and stability in the region and ensure the freedom of navigation and commerce.”