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Iran-US Strait of Hormuz Dispute: MoU Collapse Risks 20M Barrels/Day Oil Supply

Intl. RelationsSecurity & DefenceEconomyEnvironmentCORE
Target:UPSC GS-IIMPSCSSC GATeachingPrelims HighMains HighStatic GK Link
13 Jul 2026
~2 min
Source: The Hindu
Key Data:20 million barrels oil per day112 billion cubic metres LNG30% of global fertiliser tradeMoU signed June 17, 2026War started February 28, 2026Article 5 of MoU
Bodies:US NavyIRGCUS GovernmentIranian GovernmentOman
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What This Article Covers

1.US-Iran MoU signed June 17, 2026, promising ceasefire and nuclear talks, is falling apart due to disputes over Article 5 (safe passage through Strait of Hormuz).

2.Iran designated a new shipping route along its coast; US backed alternative route along Oman; Iran attacked tankers using US route, leading to US airstrikes and IRGC temporary closure of strait.

3.Iran insists on controlling the strait to maintain strategic leverage, as it sees control as key to regional power and forcing US concessions.

The Big Picture
Prelims · HighMains · High

The US-Iran MoU over the Strait of Hormuz is collapsing, threatening global oil and LNG supplies. Iran sees control of the strait as strategic leverage, while the US seeks to deny it. This has direct implications for India's energy security and regional stability.

Exam Lens

Quick Exam Facts From News

Oil transit through Strait of Hormuz (2025)20 million barrels/day
LNG transit through Strait of Hormuz (2025)112 billion cubic metres
Global fertiliser trade share30%
MoU signing dateJune 17, 2026
War start dateFebruary 28, 2026

1-Minute Revision

  • ›Oil transit through Strait of Hormuz (2025): 20 million barrels/day
  • ›LNG transit through Strait of Hormuz (2025): 112 billion cubic metres
  • ›Target this Data: 20 million barrels/day oil and 112 BCM LNG transit through Strait of Hormuz (2025)
  • ›Target this Data: MoU signed June 17, 2026; War started February 28, 2026
  • ›Target this Institution: IRGC (Islamic Revolutionary Guard Corps) announced temporary closure of strait
  • ›Target this Legal Point: Article 5 of MoU - 'safe passage of commercial vessels'

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Practice exam-style questions, track your score, and strengthen your recall.

Q1Static LinkageEasy

Which organization announced the temporary closure of the Strait of Hormuz according to the article?

Q2Statement-basedHard

Consider the following statements regarding the US-Iran MoU:

1. The MoU was signed on June 17, 2026.

2. Article 5 of the MoU requires Iran to allow unrestricted passage through the Strait of Hormuz.

3. The US lifted its maritime blockade and issued a sanctions waiver for Iranian crude as part of the MoU.

Which of the statements given above is/are correct?

Q3Data-centricMedium

How many barrels of oil per day passed through the Strait of Hormuz in 2025?

Q4Application/ImpactMedium

What is Iran's primary strategic objective in insisting on controlling the Strait of Hormuz?

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