You have deployed an OCI VCN with a CIDR of 192.168.0.0/16. You want to peer this VCN with another VCN that has a CIDR of 192.168.64.0/18. Will this local peering succeed?
Local VCN peering in Oracle Cloud Infrastructure requires non-overlapping CIDR blocks to ensure proper routing of network traffic. In this scenario, the first VCN uses the CIDR block 192.168.0.0/16, which fully encompasses the second VCN's CIDR block of 192.168.64.0/18. Because the IP address ranges overlap, the OCI networking control plane cannot establish unambiguous routing paths between the virtual cloud networks, thereby causing the peering attempt to fail.
Why this answer
Local peering between VCNs requires that their CIDR blocks do not overlap. Here, VCN1 has 192.168.0.0/16, which includes all addresses from 192.168.0.0 to 192.168.255.255. VCN2 has 192.168.64.0/18, which falls entirely within that range (192.168.64.0 to 192.168.127.255).
Therefore, the CIDR blocks overlap, and local peering will fail.
Exam trap
1Z0-1072-26 often tests CIDR overlap rules for VCN peering, and candidates may mistakenly think that a subnet CIDR within a larger VCN CIDR is acceptable, but any overlap prevents peering.
How to eliminate wrong answers
Option A is wrong because being in the same compartment is not sufficient; non-overlapping CIDRs are required. Option B is wrong because VCNs do not need identical CIDR sizes; they can be different as long as they don't overlap. Option D is wrong because even though the second CIDR is a subnet of the first, that is precisely why peering fails—overlapping CIDRs are not allowed.