The memorandum of understanding between the United States and Iran, announced on June 15 and signed in Geneva on June 19, 2026, ends a 107-day conflict that disrupted global energy markets, threatened to engulf West Asia in a wider war, and exposed the structural vulnerabilities of every major power that had a stake in regional stability. For India, which relies on imports for over 85% of its crude oil needs, this development has significant implications for energy security, fiscal health, and its strategic role in the Global South. As one of the world’s largest energy importers, India depends heavily on oil and gas supplies that pass through the Strait of Hormuz. Any disruption in this narrow maritime corridor quickly translates into higher fuel prices, inflationary pressures, and a larger import bill. However, for India the benefits extend beyond low energy price volatility. Greater regional stability would improve shipping confidence, reduce insurance and logistic costs, strengthen initiatives such as IMEC (India Middle East Europe Economic Corridor) and create a more predictable environment for trade with gulf and wider Middle East. The IMEC will comprise two separate corridors, the east corridor connecting India to the Gulf and northern corridor connecting Gulf to Europe. 

The US-Iran conflict has severely disrupted movement of cargo ships across the Strait of Hormuz, a key narrow passage between Iran and Oman that handles roughly a fifth of global oil consumption and serves as the primary export route for major Gulf producers, including Saudi Arabia, Iraq,........

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