Iran Links Reopening of the Strait of Hormuz to Seven Conditions Under the Islamabad MoU
Iran's Parliament Speaker stated on 4 October 2026 that the Strait of Hormuz will not reopen until seven Iranian conditions are met. These conditions are based on the Islamabad Memorandum of Understanding (MoU), an interim agreement between the US and Iran signed in June 2026.
The statement came a few days after Iran received the United States' reply, sent through a mediator, to an Iranian diplomatic proposal.
Background: shipping through the strait has been largely blocked since 28 February 2026, when the US and Israel launched air strikes on Iran. Iran responded by restricting passage, attacking ships and laying sea mines.
The Islamabad MoU, signed on 17 June 2026 after mediation by Pakistan, extended the ceasefire by 60 days to negotiate a final deal. Reported Iranian demands include lifting the US blockade of Iranian ports, removing oil sanctions and releasing frozen Iranian assets.
The closure has caused the largest disruption to world energy supply since the 1970s. Brent crude crossed $100 a barrel in March 2026 and peaked at about $126.
Strait of Hormuz: Geography and Strategic Significance
The Strait of Hormuz is a narrow sea passage between Iran in the north and Oman (its Musandam peninsula) in the south. It joins the Persian Gulf to the Gulf of Oman, which opens into the Arabian Sea. It is the only sea exit for the oil and gas of most Gulf countries, which makes it the world's most important oil "chokepoint" (a narrow passage that, if blocked, stops a large share of world trade).
Iran is using its position on the northern shore of this narrow chokepoint as bargaining power in its talks with the US. As long as the strait stays closed, oil and gas prices stay high, which directly affects import-dependent countries like India.
India's Strategic Petroleum Reserves (SPR)
Strategic Petroleum Reserves are large emergency stocks of crude oil kept by the government in underground rock caverns. They are used only when normal supply breaks down, for example because of war, sanctions or a blocked sea route. Think of them as a family's emergency ration stored for a bad month.
A long closure of the Strait of Hormuz is exactly the kind of supply shock the SPR exists for. It shows why India is trying to fill its caverns and speed up Phase II to move closer to a 90-day safety cushion.
- Strait of Hormuz largely blocked since 28 February 2026 (start of US-Israeli strikes on Iran)
- Islamabad MoU (US-Iran interim agreement): signed 17 June 2026, mediated by Pakistan; 60-day ceasefire extension
- Iran's position (4 October 2026): strait stays shut until seven conditions under the Islamabad MoU are met
- Brent crude crossed $100 per barrel on 8 March 2026; peak about $126
- Strait width at narrowest: about 33 km (21 nautical miles); shipping lanes about 2 miles each
- Pre-war share of India's crude imports via Hormuz: about 45%; LNG: about half
- India's SPR Phase I: 5.33 MMT (Visakhapatnam 1.33, Mangaluru 1.5, Padur 2.5); Phase II: Chandikhol 4 MMT and Padur 2.5 MMT