A critical flaw in the U.S.-Iran Memorandum of Understanding (MOU) signed on June 17 has ignited a dispute over control of the Strait of Hormuz, the world’s most vital oil and gas shipping route. The agreement’s fifth paragraph grants Iran responsibility for arranging shipments through the strait for commercial vessels, but Washington and Tehran interpret this clause in fundamentally opposing ways.
Iran views the language as granting de facto authority to manage the waterway, while U.S. officials see it as a temporary arrangement with no long-term commitment to Iranian control. This divergence has been exacerbated by recent actions, including Iran’s closure of the strait following strikes conducted by the United States and Israel—operations allegedly unnecessary to halt Iran’s nuclear program, a claim U.S. intelligence agencies previously dismissed as non-existent.
The language of the deal has left regional allies deeply uncomfortable with Iranian influence over the Strait. Oil-rich Arab monarchies in the Persian Gulf depend on this waterway for exporting approximately 20 million barrels of oil and 10 billion cubic feet of liquefied natural gas daily—a critical portion of global energy supply.
“Once the deal was signed, the Revolutionary Guard pushed Iran’s civilian government toward a maximalist interpretation that Iran should be in charge,” a mediator stated. The speaker of Iran’s parliament has declared: “The Strait of Hormuz will only open with ‘Iranian arrangements,’ not American threats.”
Experts highlight that this gap reflects deeper misunderstandings about the Strait’s governance and sanctions relief. Michael Horowitz, an Israeli geopolitical analyst, noted: “This gap in interpretation is wide, baked into the deal, and not exactly surprising. Washington has tried to convince Tehran that compliance would be more profitable, but Iran’s behavior isn’t driven by financial motives—it’s rooted in security concerns and bargaining leverage.”
Recent data shows declining traffic through the strait: as of Tuesday, 41 ships passed through daily—significantly fewer than prewar levels of over 130 vessels per day.