India welcomed a Memorandum of Understanding between the U.S. and Iran to end hostilities on June 23, 2024 [1].

The agreement is critical for global energy markets because it facilitates the reopening of the Strait of Hormuz, a primary artery for oil shipments. For India, which relies heavily on imported energy, the move promises to ease supply-chain disruptions, and enhance national energy security.

National Security Advisor Ajit Doval addressed the development during the BRICS National Security Advisers’ Meeting in New Delhi [2]. Doval said, "We welcome the US‑Iran MoU and believe that the opening of the Strait of Hormuz will boost energy supplies" [1].

While the Indian government has expressed support, officials remain vigilant regarding the long-term implementation of the deal. Doval said the government has "cautious optimism about the pact" [3].

The diplomatic breakthrough follows intense negotiations, including talks involving an Iranian delegation in Switzerland that lasted approximately 18 hours [4]. This effort to stabilize the region aligns with India's broader strategic goals of maintaining balanced relations with both Washington and Tehran.

During the meeting, Doval also highlighted the importance of the BRICS framework in managing such global shifts. He said, "The BRICS is a very special coalition that has a very special role to play" [2].

The reopening of the Strait of Hormuz is expected to lower the risk premium on crude oil and stabilize shipping lanes that have been subject to volatility. By supporting the MoU, India seeks to ensure that energy flows remain uninterrupted to protect its economic growth from regional shocks.

“"We welcome the US‑Iran MoU and believe that the opening of the Strait of Hormuz will boost energy supplies."”

India's endorsement of the U.S.-Iran agreement reflects a pragmatic approach to energy security. By prioritizing the stability of the Strait of Hormuz over geopolitical friction, New Delhi aims to insulate its economy from oil price spikes while utilizing the BRICS platform to maintain diplomatic leverage in a multipolar security environment.