Key facts
- A US-Iran framework deal to end a 108-day conflict is expected to be signed on June 19, 2026.
- The deal is anticipated to lead to the reopening of the Strait of Hormuz.
- India relies heavily on the Strait for energy imports, with significant percentages of crude oil, LPG, and LNG sourced through this route.
- The closure of the Strait has negatively impacted India's engineering exports to the WANA region, causing route diversions and increased costs.
- Engineering exports to the WANA region saw a substantial decline in March and April 2026.
- EEPC India Chairman Pankaj Chadha views the deal as beneficial for global trade and Indian exporters.
A framework deal between the US and Iran to end their 108-day conflict is reportedly set to be signed on June 19, 2026, in Switzerland. This agreement is expected to lead to the reopening of the Strait of Hormuz, a critical chokepoint for global trade.
The closure of the Strait has had significant repercussions, particularly for India, which relies on it for approximately 50% of its crude oil, 70% of LPG, and nearly 90% of its LNG imports. The disruption has also led to route diversions, transit delays, and increased logistics costs for exports, especially to the West Asia and North Africa (WANA) region.
Engineering exports to the WANA region experienced a sharp decline, with a 50% year-on-year drop in March 2026 and an 8% decrease in the fiscal year 2025-26. In April 2026, total engineering shipments to the region amounted to $1.10 billion, an 18% decrease compared to the same month the previous year. This decline is attributed to reduced demand from key markets like the UAE and Saudi Arabia.
Industry bodies have welcomed the prospect of the Strait's reopening. Pankaj Chadha, Chairman of EEPC India, stated that the deal is a positive development for global trade and Indian engineering exporters, anticipating reduced disruptions and costs. He also noted that while some WANA markets saw a decline, exports to Oman increased due to a recently signed CEPA.
The successful implementation of the peace deal will be crucial for restoring normal trade flows through the Strait of Hormuz.