US-Iran Peace Deal: A Critical Economic Lifeline for Iran
Important topics and their relevance in UPSC CSE exam for June 19, 2026. If you missed the June 18, 2026 UPSC CSE exam key from the Indian Express, read it here FRONT PAGE Deal ending war gives Iran critical economic lifeline Syllabus: Preliminary Examination: Current events of national and international importance. Mains Examination: General Studies II: Effect of policies and politics of developed and developing countries on India’s interests What’s the ongoing story : The interim deal reached by the United States and Iran to end their war will reopen the Strait of Hormuz and bring the two adversaries back to the negotiating table over Tehran’s nuclear program, according to details released by both countries. It will also give Iran an immediate benefit, allowing it to sell its oil freely again. Key Points to Ponder: • US-Iran peace deal-what are the key takeaways? • What Trump has claimed, and what the record shows? • Why is Israel PM Netanyahu unhappy with Trump’s Iran peace deal? • Why it is being said that Iran deal is Israel’s disaster? • Operation Epic Fury-who won and who lost? • What is going on with the United States and Israel? • “Following the Iran peace accord, the United States and Israel have become laughingstocks”-Analyse the statement • How Pakistan is using the Iran war to reinvent itself? • India in the 2026 Iran war-know in detail • What Iran and US get from deal? Key Takeaways: • Besides the new oil revenue for Iran, the two sides are more or less back where they were 3½ months ago — before Israel and the U.S. launched their war, which has left thousands dead across the region, triggered a global energy crisis and shaken the American economy. • Iran and the U.S. will enter a 60-day period of negotiations, and hanging over them will be the question of whether U.S. President Donald Trump can wrest a better deal than the 2015 nuclear accord he scuttled eight years ago. • Trump signed a physical copy of the deal Wednesday while dining with French President Emmanuel Macron at the Palace of Versailles. • In Tehran, President Masoud Pezeshkian signed the document, according to the state-run IRNA news agency, which posted an image of him holding up the deal with his signature and Trump’s. • Under the agreement, the Strait of Hormuz will reopen, and the U.S. will lift its blockade of Iranian ports — both of which should push gas prices down. Passage through the waterway will be toll-free for 60 days, and the deal doesn’t preclude fees after that, according to U.S. officials who spoke on the condition of anonymity to read details of the draft, which has not yet been officially released by Washington. • Iran’s closure of the strait, through which around a fifth of the world’s traded oil supplies passed before the war, proved perhaps its strongest weapon. It drove up global fuel prices, made food and other products like fertilizer more expensive, and helped push U.S. inflation to 4% ahead of this fall’s midterm congressional elections. Do You Know: • The US and Iran signed a 14-clause Memorandum of Understanding (MoU) to begin 60 days of negotiations for a final deal on June 17 and 18, respectively. Here is a breakdown of the key points, what each side has promised, and what it says about their respective positions after months of conflict. — Clause 1: End to hostilities on all fronts — including Lebanon: This is the principal war termination clause. Compared to the April 8 ceasefire, the MoU signed by US President Donald Trump and Iranian President Masoud Pezeshkian cements Lebanon’s integration with the US-Iran cessation of hostilities. — Clause 2: No interference in internal affairs—The immediate import of this clause is the removal of Trump’s rationale for resuming attacks on Iran. Between January 13 (when Trump stated that “help is on its way” in support of Iranian anti-government protestors) and February 28 (war initiation), Washington’s rationale oscillated between “regime change” and de-nuclearisation. The clause is, thus, imperative in Tehran’s view, beyond Iran’s historic concerns regarding US interventions in Iran. — Clause 3: contains a crucial provision allowing both sides to extend the 60-day period before a final agreement, with mutual consent. — Clause 4: Removal of US blockade: By June 16, the US Navy had already effectively withdrawn its blockade. In functional terms, withdrawal would refer to the remaining US Carrier Strike Groups deployed to the Strait of Hormuz. — Clause 5: Passage through Hormuz: Iran will allow unconditional transit passage to shipping in the Strait of Hormuz. However, it is the provision allowing Iran (and Oman) to define the future administration of the Strait that meets Iran’s consistent demand that the Strait cannot return to its pre-war status. — Clause 6: $300-billion plan for reconstruction of Iran: The reconstruction initiative is a core component of the MoU, and the key distinguishing element from past US-Iran negotiations for the 2015 Joint Comprehensive Plan of Action (JCPOA) for limiting Iran’s nuclear program. — Clause 7: Sanctions relief in final deal: This clause will have to address several categories of US unilateral sanctions on Iran, including those on the energy and shipping sectors. A Wall Street Journal estimate suggests that Iranian oil and fuel sales could generate around $60 billion in annual revenue. — Clause 8: Iran to not procure or develop nuclear weapons: This clause’s reaffirmation of Iran’s commitment not to pursue a nuclear programme reflects continuity in Iran’s position since 2003. A lot of the US need to degrade Iran’s existing nuclear capabilities is now moot, given the US bombardment of Natanz, Fordow, Arak, and Isfahan in June 2025. — Clause 9: Status quo until final deal: While this is meant to secure the gains of the MoU, none of the 14 clauses contains any reference to negotiations over ballistic missiles or Iran’s relationships with regional non-state actors. — Clause 10 (sanctions waivers) acts as an interim arrangement before Clause 7 (sanctions removal) is operationalised. — Clause 11: US unfreezes Iranian assets: Iran’s frozen funds in foreign banks and holdings amount to over $100 billion. Around $12 billion has reportedly already been unfrozen and made available to Iran, which President Pezeshkian said would be used to pay pending salaries, with banks in Qatar and the UAE being the principal facilitating institutions. — Clause 12 provides for creating a mechanism to monitor the implementation of the MoU. This matters for the operationalisation of Clause 3, which allows mutually decided extensions to the 60-day window. — Clause 13 sets a hierarchy of mutual priorities during the 60 days. — Clause 14’s provision for a UN Security Council Resolution for endorsing the deal is notable – despite the Trump administration’s oft-stated disdain for the UN’s mechanisms and the so-called limitations they impose on American decision-making. • The JCPOA was endorsed by UNSCR 2231, whose binding nature was affirmed in the text through Article 25 of the UN Charter. While the new UNSC Resolution will have to be similar, the limited power of the Council to prevent unilateral withdrawal by Washington was proven in 2018. This time, Iran could potentially seek fail-safe arrangements. Other Important Articles Covering the same topic: 📍 Washington-Tehran MoU is a relief, but flashpoints remain 📍 Iran gets ‘understanding’, world gets Hormuz, Trump gets his exit Previous year UPSC Main Question Covering similar theme: 1) What is the importance of developing Chabahar Port by India? (UPSC CSE, 2017) (a) India’s trade with African countries will enormously increase. (b) India’s relations with oil-producing Arab countries will be strengthened. (c) India will not depend on Pakistan for access to Afghanistan and Central Asia. (d) Pakistan will facilitate and protect the installation of a gas pipeline between Iraq and India. Private schools, pricey coaching, family business, MNC jobs: they also cracked EWS list in UPSC exam Syllabus: Preliminary Examination: Indian Polity and Governance Mains Examination: General Studies II: Government policies and interventions for development in various sectors and issues arising out of their design and implementation What’s the ongoing story : For every candidate who cracked India’s civil services this year under the Economically Weaker Section quota, the son of a security guard or the daughter of a railway porter, there are many others on the same quota list whose backgrounds tell a different story: sons and daughters of businessmen, IIT graduates, alumni of private schools in the city charging over a lakh a year in fees. Key Points to Ponder: • Economically Weaker Sections (EWS)-what are the key findings? • Who are Economically Weaker Sections? • Know the key highlights of the Economically Weaker Sections Reservation-103rd Constitution (Amendment) Act, 2019 • Why does this matter in UPSC Civil Services Examination? • What was the Supreme Court’s Verdict in Indira Sawhney case 1992? • Supreme Court on EWS Reservation Criteria-Know about it • EWS Reservation-Issues and Challenges • How is EWS status determined under the law? • Why annual income below ₹8 lakh is the most controversial clause? Key Takeaways: • There were 104 candidates selected in the Civil Services Examination 2025 under the 10 per cent quota for the Economically Weaker Section (EWS) — those from general category families with an annual income of less than Rs 8 lakh. An investigation by The Indian Express has found a gap between the scheme’s stated purpose and the profiles of many it has come to benefit. • The successful candidates include those whose presence affirms the scheme’s effectiveness as a stepping stone for the poor — from the son of a security guard to the daughter of a railway porter and the son of a bus conductor. • However, there are also those on the list whose presence raises questions on their eligibility and has prompted a debate within sections of the Union Public Service Commission on the need to tighten the rules or ensure more robust due diligence. • The investigation reveals that a significant number of successful EWS candidates in 2025 attended well-known civil services coaching institutes (64.4 per cent); underwent private schooling (44.4 per cent); had parents who ran businesses (26.9 per cent); and held jobs in the corporate sector (9.6 per cent). • The EWS quota, introduced in 2019, reserves 10 per cent of seats for candidates from general-category families with a gross annual income below Rs 8 lakh, subject to asset-ownership conditions. • This newspaper investigated the social media profiles, coaching institute records, and school and college details, of all the 104 candidates who qualified under the EWS quota this time from the list of 958 selected in 2025 — the latest completed cycle of the examination for which the results were declared in March this year. Do You Know: • The EWS quota was introduced in 2019 through the 103rd Constitutional Amendment. It provides 10% reservation in education and government jobs for candidates from the “General Category” who are not eligible for reservations under SC, ST, or OBC categories and who meet prescribed income and asset criteria. Today, a family with an annual income below ₹8 lakh, and within specified asset limits, can qualify for EWS benefits. • The UPSC Civil Services Examination is among the most competitive exams in the world. —Nearly 10 lakh candidates apply each year. —Around 5-6 lakh actually appear for the Preliminary Examination. —Roughly 14,000-15,000 reach the Mains stage. —Around 2,500-3,000 are interviewed. —Just 1,000-1,100 candidates are finally selected for the IAS, IPS, IFS and other central services. • The investigation find that among the 104 EWS candidates selected: —At least 84 had received formal UPSC coaching. —At least 67 attended some of India’s most prominent coaching institutes, where fees can run into lakhs of rupees. —At least 46 studied in private schools. —At least 28 came from business families. —At least 10 had prior corporate-sector experience. —At least 14 were IIT graduates, with others coming from NITs, Delhi University and JNU. Other Important Articles Covering the same topic: 📍 Why top court had questioned RS 8-lakh limit Previous year UPSC Main Question Covering similar theme: 2) Consider the following statements: (UPSC CSE, 2023) Statement-I: The Supreme Court of India has held in some judgments that the reservation policies made under Article 16(4) of the Constitution of India would be limited by Article 335 for maintenance of efficiency of administration. Statement-II: Article 335 of the Constitution of India defines the term ‘efficiency of administration’. Which one of the following is correct in respect of the above statements? (a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I (b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-1 (c) Statement-I is correct but Statement-II is incorrect (d) Statement-I is incorrect but Statement-II is correct THE IDEAS PAGE 75 years on, the First Amendment still casts a long shadow Syllabus: Preliminary Examination: Indian Polity and Governance Mains Examination: General Studies II: Indian Constitution—historical underpinnings, evolution, features, amendments, significant provisions and basic structure. What’s the ongoing story : Tripurdaman Singh Writes-The consequences of the First Amendment have been far from benign. It dealt a crushing blow to the nascent forces of Indian liberalism, creating the constitutional plumbing for a vast armoury of repressive and coercive laws, including sedition. Key Points to Ponder: • What were the major provisions of the Constitution (First Amendment) Act, 1951? • Why was the First Amendment considered necessary by the government of the time? • What is the significance of Articles 31A and 31B in India’s constitutional development. • What is the concept of reasonable restrictions under Article 19? • How did the First Amendment contribute to the development of affirmative action policies in India? • What circumstances led to the enactment of the First Constitutional Amendment? • How was the implications of First Amendment on freedom of speech and expression in India? Key Takeaways: • June 18, 2026, will mark 75 years since Rajendra Prasad gave his reluctant assent to the First Amendment — a “seismic shift” in India’s constitutional architecture, the aftermath of which the country’s pre-eminent legal scholar Upendra Baxi labelled the “Second Constitution”. Few seemed to have recalled the grim events of 1951, but it was a moment that continues to course through the nation’s body politic, and one that has had profound and deleterious effects on its democracy and constitutional order. • On January 26, 1950, the Republic of India, described by the Oxford don Kenneth Wheare as the world’s greatest experiment in democratic government, was inaugurated to great acclaim. Many had considered it an impossibility: Clement Attlee had even cautioned Jawaharlal Nehru against it, calling republicanism of the kind India was contemplating an alien import from Europe. • At the heart of this transition lay the country’s new constitution, containing what The New York Times approvingly termed “the most detailed document of fundamental rights found anywhere,” widely seen to reflect India turning the page on its colonial past and taking a giant step towards a liberal new future. • It was a future that failed to materialise as imagined. By early 1951, the Nehru government had pronounced the Constitution to be the chief impediment in the way of its social policy and a stumbling block on the way to progress. The “magnificent Constitution” had, as he declared, been “kidnapped and purloined by lawyers”. How had such a situation arisen? Three key legal battles fought around three key fundamental rights — the right to freedom of speech, the right to freedom from discrimination, and the right to property — shaped Nehru’s assessment. • Government attempts to censor the Organiser (a scathing critic of its purported indifference towards the plight of refugees from East Bengal) and Cross Roads (a left-leaning weekly harshly criticising the brutal treatment of communist detainees) had been countermanded by the Supreme Court, which had also found the underlying legislation to be unconstitutional, knocking, to quote Sardar Patel, the bottom out of the laws used to control the press. • In Madras, where a woman named Champakam Dorairajan had challenged the existing policy of strict caste and community-based quotas, the High Court had found that religion, race, and caste could not be a basis for admissions to educational institutions and that reservation beyond those provided to the Scheduled Castes and Tribes were thus violative of the right to freedom from discrimination. • The Patna High Court had struck the final blow in March 1951 when it held the Bihar Land Reform Act to be unconstitutional. Interestingly, rather than the right to property (as many had feared), it was the right to equality that proved to be the Act’s undoing: The sliding scale of compensation it prescribed, where the rate went down as the size of the land parcel went up, was the culprit. Do You Know: • The consequences of the First Amendment have been far from benign. It dealt a crushing blow to the nascent forces of Indian liberalism, creating the constitutional plumbing for a vast armoury of repressive and coercive laws, including sedition. Moreover, it established the terrible precedent of retrospectively amending the Constitution to overcome adverse judicial pronouncements. • The cavalier disregard for democratic propriety established a pattern for future egregiousness. Political power triumphed over constitutional order, eroding democratic norms even before the ink had dried on the original Constitution. • Disdain for civil liberties; prioritising the needs of the state; an aversion to public criticism cloaked in the language of “fake news” and “subversive activities”; a brute parliamentary majority riding roughshod over the protestations of the Opposition and civil society; a government agenda and party ideology elevated above fundamental rights; the claim that the wishes of the legislature should enjoy primacy over constitutional principles: The resonances with the contemporary world are more than semantic. Yet, there seems to be little inclination to register its 75th anniversary or revisit the long shadow it has cast on Indian democracy. Neither by its original supporters, now on the receiving end of the legal architecture it helped create, nor its original opponents, its prime targets now ensconced in the ruling establishment. Other Important Articles Covering the same topic: 📍 Who is Champakam Dorairajan, the woman in a nine-yard sari who triggered the First Amendment? Previous year UPSC Main Question Covering similar theme: 3) The Ninth Schedule was introduced in the Constitution of India during the prime ministership of (UPSC CSE, 2019) (a) Jawaharlal Nehru (b) Lal Bahadur Shastri (c) Indira Gandhi (d) Morarji Desai EXPLAINED Why the monsoon’s progress has stalled over Maharashtra Syllabus: Preliminary Examination: Indian and World Geography-Physical, Social, Economic Geography of India and the World. Mains Examination: General Studies I: Important Geophysical phenomena such as earthquakes, Tsunami, Volcanic activity, cyclone etc., geographical features and their location-changes in critical geographical features (including water-bodies and ice-caps) and in flora and fauna and the effects of such changes. What’s the ongoing story : It has been a fortnight since the official commencement of the southwest monsoon season, but its performance has largely been sub-nominal so far. All-India rainfall stood 38% below average between June 1 and 17. Key Points to Ponder: • What is the arrival and departure of monsoon? • What is meant by the “onset of the monsoon”? • What are these conditions, which determine the onset of monsoon? • Monsoon mechanism in India-Know in detail • What has stalled the advancement of southwest monsoon? • How has the monsoon progress been so far? • Is delay in onset a normal phenomenon? • Why has the monsoon slowed over Maharashtra? • When is the next monsoon advance likely? • How Arabian Sea branch and Bay of Bengal branch are associated with Indian monsoon? • What is difference between Arabian Sea branch and Bay of Bengal branch? • What is the difference between the southwest monsoon and the Northeast Monsoon? • know the terms and their influence on Indian Monsoon—El Nino Southern Oscillation (ENSO), Indian Ocean Dipole (IOD), El Nino, La Nina. Key Takeaways: • The June-September southwest monsoon brings more than 70% of India’s annual rainfall. Climatologically, the monsoon arrives over the Andaman Sea in the third week of May and advances into the mainland through Kerala, generally by June 1. • It then advances in surges and reaches north Uttar Pradesh, Delhi and its neighbouring areas by the end of June, and covers the entire country by July 15. An early or timely onset of the monsoon, however, does not guarantee good rainfall or its distribution, or vice versa. • This year, the southwest monsoon onset over Kerala was on June 4, and it progressed for four consecutive days. It advanced early into parts of the west coast, including Karnataka and Goa, but marked a delayed onset over most regions in northeast India. • The rainfall intensity over Kerala, southern Karnataka, Tamil Nadu , Lakshadweep, and the whole of northeast India picked up in early June, but did not sustain for long. The southwest India region recorded a 8% rain surplus upto June 10. • Maharashtra’s wait for the monsoon has now gotten longer, and there are no clear indications of possible onset yet. The latest monsoonal advance was on June 8, over parts of south Konkan and adjoining areas of south Madhya Maharashtra. • Overall, the Arabian Sea branch of the monsoon appears to be making slower progress this year compared to the Bay of Bengal branch, which has covered regions upto Koraput, Phulbani, Ranchi, Jamui and Muzaffarpur, as of June 17. • After June 8, the monsoon advance continued mainly along eastern India regions. On June 15, the monsoon advanced into the remaining parts of Andhra Pradesh, West Bengal, Telangana, Odisha, Jharkhand and Bihar. Do You Know: • ENSO and IOD refer to the condition of sea surface temperatures in the Pacific and Indian Oceans respectively. Both of them influence monsoon rainfall. If the sea surface temperature in the eastern Pacific Ocean, off the cost of South America, is warmer than usual, a condition called El Nino, rainfall over India during the monsoon season is generally adversely affected. The opposite condition, called La Nina, favours good rainfall. IOD refers to the difference in temperatures in the Bay of Bengal and Arabian Sea sides of the Indian ocean. IOD is considered positive when the Arabian Sea side is warmer than the Bay of Bengal side. This is generally favourable for Indian monsoon. Other Important Articles Covering the same topic: 📍 Why has monsoon progress stalled, and when can rains be expected next? Previous year UPSC Main Question Covering similar theme: 4)The seasonal reversal of winds is the typical characteristic of (UPSC CSE, 2014) (a) Equatorial climate (b) Mediterranean climate (c) Monsoon climate (d) All of the above climates 5) With reference to ‘Indian Ocean Dipole (IOD)’ sometimes mentioned in the news while forecasting Indian monsoon, which of the following statements is/are correct? (UPSC CSE, 2018) 1. IOD phenomenon is characterised by a difference in sea surface temperature between tropical Western Indian Ocean and tropical Eastern Pacific Ocean. 2. An IOD phenomenon can influence an EI Nino’s impact on the monsoon. Select the correct answer using the code given below: (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 ECONOMY Govt may roll back emergency fuel measures if tensions ease Syllabus: Preliminary Examination: Economic and Social Development Main Examination: General Studies III: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment. What’s the ongoing story : With the US-Iran MoU raising hopes of normalisation of energy flows through the Strait of Hormuz , emergency measures taken since early March to ensure adequate fuel supply security to the most critical sectors and consumer segments are now likely to be reviewed and rolled back once the government feels the situation is stable and nearing normalcy, according to a senior government official. Key Points to Ponder: • Pricing mechanism of LPG (Liquefied Petroleum Gas) in India—What you know about the same? • How subsidy rationalisation and price reforms ensures the financial sustainability of the LPG distribution system in India? • How many ships are waiting to pass through Hormuz? • How much traffic is expected now that the Strait has reopened? • How long can it take for traffic flow to normalise? • What could hinder the resumption of traffic through Hormuz? Key Takeaways: • The West Asia war, which broke out on February 28 with the US and Israel striking Iran, led to an effective halt in vessel movements through the critical chokepoint of the Strait of Hormuz, which accounted for a fifth of global oil and liquefied natural gas flows. The strait is a narrow waterway that connects the Persian Gulf with the Gulf of Oman and the Arabian Sea, and is the primary route to evacuate energy supplies from the broader Gulf region. • Given the supply squeeze, the government announced several measures, which included prioritising natural gas supply to some priority sectors while reducing it for others, reducing liquefied petroleum gas (LPG) allocation for commercial and industrial consumers to ensure cooking gas availability to households, increasing mandatory waiting periods of LPG refills by households, and measures to prevent hoarding of petrol and diesel. • “We have been reviewing the situation on a daily basis…all the measures we took during this crisis period will be reviewed and once we feel confident that the situation has normalised, we will start rolling those back,” the government official said. Do You Know: • Around 40% of India’s crude oil imports, 60% of its LNG imports, and a whopping 90% of its LPG imports regularly came from West Asia through the Strait of Hormuz. The country’s dependence on imports stands at over 88% for oil, 60% for LPG, and about 50% for natural gas, which is imported as LNG. India is among the top importers of crude oil, LNG, and LPG • While highly diversified crude sourcing helped ensure adequate oil, petrol, diesel, and jet fuel availability in the country, the government was forced to ration gas supplies to certain industries and commercial consumers. Moreover, the surge in international prices forced India to import oil and gas at extremely high rates, as the country had to prioritise supply security over price considerations. • With maritime traffic through the Strait of Hormuz now widely expected to pick up following the US-Iran initial peace agreement, huge volumes of oil and gas stranded in the Persian Gulf could hit the international market in the coming months, which is likely to cover the shortfall in global supply and even lead to a glut a few months down the line if regular oil and gas exports from the region resume. Other Important Articles Covering the same topic: 📍 After US-Iran peace deal, how quickly can Strait of Hormuz clear its shipping backlog Previous year UPSC Main Question Covering similar theme: 6) Consider the following statements: (UPSC CSE, 2019) 1. Petroleum and Natural Gas Regulatory Board (PNGRB) is the first regulatory body set up by the Government of India. 2. One of the tasks of PNGRB is to ensure competitive markets for gas. 3. Appeals against the decisions of PNGRB go before the Appellate Tribunals for Electricity. Which of the statements given above are correct? (a) 1 and 2 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3 PRELIMS ANSWER KEY 1.(c) 2.(c) 3.(a) 4.(c) 5.(b) 6.(b) For any queries and feedback, contact priya.shukla@ indianexpress.com Subscribe to our UPSC newsletter. Stay updated with the latest UPSC articles by joining our Telegram channel – IndianExpress UPSC Hub, and follow us on Instagram and X.
&w=3840&q=75)
-1781868853855_v.webp&w=3840&q=75)
-1781864581825_v.webp&w=3840&q=75)
