India, July 22 -- When the US and Iran signed a memorandum of understanding (MoU) to end the fighting in West Asia in mid-June, countries and economies were relieved and circumspect at the same time. Relieved because the war's fuel supply shock and its widespread economic disruption eased. And circumspect because the terms of the cease fire MoU were pretty vague, especially regarding control of the critical maritime chokepoint, the Strait of Hormuz.

Iran, having discovered its bargaining value during the war, was adamant on retaining its control on traffic in the Strait while the US and some of its regional allies were keen that this not be the case. The US and Iran are back to exchanging strikes, and because Iran still has the military ...