The United States and Iran have announced a framework agreement aimed at ending a conflict that has continued for more than three months, with both sides confirming that a formal Memorandum of Understanding (MoU) is expected to be signed in Switzerland on 19th June.
The proposed agreement includes provisions to end military operations, reopen the Strait of Hormuz and lift the US naval blockade of Iran, while discussions on Tehran’s nuclear programme have been deferred to a separate round of negotiations.
Details of the agreement have not yet been released publicly and are expected to be disclosed only after the formal signing ceremony.
US President Donald Trump announced the breakthrough on his Truth Social platform and subsequently described the agreement as a historic achievement.
Iran’s Deputy Foreign Minister for Legal and International Affairs, Kazem Gharibabadi, also confirmed the framework agreement. He stated that Tehran would participate in a proposed 60-day negotiation period only after verifying that Washington had fulfilled its commitments under the accord.
A key component of the proposed agreement is the reopening of the Strait of Hormuz, one of the world’s most strategically important shipping routes. Officials from both countries said they had reached a framework to end hostilities, halt the US blockade of Iran and restore access through the waterway.
Since the beginnign of the conflict exports of textiles and apparel have been steadily dropping; in March 2026, they decreased by 14% month over month, and in April 2026, they decreased by 3.5%. In April, apparel growth experienced a significant year-over-year decline of 11.66%. Since the conflict, the cost of polyester has risen by 25%, which raised the price of cotton. India then lifted import taxes on the natural fibre until October 2026.
Industry bodies like The Confederation of Indian Textile Industry (CITI) has welcomed the announcement with CITI Chairman Ashwin Chandran saying the uncertainty had placed considerable pressure on the predominantly MSME-driven textile and apparel industry, where businesses often operate on thin margins and have limited capacity to absorb prolonged financial shocks. He highlighted that the reopening of the Strait of Hormuz without disruptions would enable the industry to more effectively leverage opportunities arising from Free Trade Agreements (FTAs).
Vijay Agarwal, Chairman of the Textile Export Promotion Council (TEXPROCIL), said that global buyers had faced heightened uncertainty during the conflict due to rising war-risk insurance premiums, increased synthetic fibre prices and higher freight costs. He added that Indian exporters had also been affected by cash flow disruptions, delayed receivables and mounting pressure to offer discounts on off-season garments.
Exporters in Tirupur, which accounts for around 90% of India’s knitwear exports, are also anticipating an improvement in order flows following the easing of tensions. K.M. Subramanian, President of the Tiruppur Exporters Association (TEA), said export orders had declined amid increased uncertainty among international buyers. He further noted that exporters had experienced shipment delays as a result of disruptions linked to the Strait of Hormuz, which had adversely affected trade operations during the conflict.
Bharat Tex Special Report 2026 
