Renewed military clashes in the Strait of Hormuz are causing economic instability in Iran and casting doubt on a potential memorandum of understanding (MoU) between Iran and the United States. The confrontations, occurring over two consecutive nights, center on the passage of vessels through the strategically vital waterway. Iranian markets have reacted negatively to the escalating tensions. The Islamic Revolutionary Guard Corps (IRGC) has intensified its actions amid the unrest, potentially complicating diplomatic efforts. The future of the proposed MoU, intended to de-escalate regional conflicts, is now uncertain. These developments signal a heightened risk of further escalation in the region and potential disruption to global shipping lanes.