Islamabad, June 18, 2026: A major diplomatic breakthrough aimed at ending months of conflict between the United States and Iran was achieved on Thursday as both countries formally signed the Islamabad Memorandum of Understanding (MoU), with Pakistan announcing that the agreement has entered into force with immediate effect.
Prime Minister Shehbaz Sharif confirmed that the memorandum was signed electronically by US President Donald Trump and Iranian President Masoud Pezeshkian and endorsed by Pakistan in its role as mediator.
“The memorandum has been signed by the honourable presidents of both countries and also endorsed by me as the mediator,” the prime minister said in a post on X. “The signing of this agreement at the highest level demonstrates the commitment of both sides to a diplomatic resolution of the conflict.”
According to the agreement, Iran will immediately reopen the Strait of Hormuz, while the United States will lift its naval blockade imposed during the conflict, marking the first tangible steps towards de-escalation in one of the most dangerous crises in the Middle East in recent years.
The accord seeks to bring an end to a war that erupted on February 28, 2026, following military action by the United States and Israel against Iran. The conflict rapidly escalated, with Iran launching missile and drone strikes across the region and closing the Strait of Hormuz—through which nearly a fifth of the world’s oil supply passes—causing major disruptions to global energy markets, shipping routes and economic stability.
Digital signatures replace planned Switzerland ceremony
President Trump signed the memorandum during a candlelit dinner at the Palace of Versailles following the G7 Summit in France. A video shared by a senior aide showed the US president signing the document as guests, including French President Emmanuel Macron, applauded.
“Just signed it,” Trump told reporters after emerging from the palace.
Iranian Foreign Ministry spokesman Esmaeil Baqaei later confirmed that the document had been finalized through the signatures of the two presidents.
A video released by Pakistan’s Prime Minister’s Office subsequently showed Prime Minister Shehbaz Sharif signing the document in his capacity as mediator.
Earlier announcements had indicated that Pakistan, with the support of Qatar, would host a formal signing ceremony in Switzerland on June 19. However, references to the ceremony were later removed from official statements.
Speaking to Iranian state broadcaster IRIB, Baqaei clarified that no signing ceremony would take place because the agreement had already been formally executed through digital signatures.
Swiss authorities nevertheless confirmed that initial technical discussions between American and Iranian delegations are expected to be held at the Buergenstock mountain resort in Switzerland, where negotiators will begin work on implementing the agreement and advancing talks toward a comprehensive settlement.
Key provisions of the agreement
The Islamabad MoU outlines a phased roadmap for restoring stability and normalizing relations.
Under the agreement:
- Iran will immediately reopen the Strait of Hormuz to international shipping.
- The United States will lift its naval blockade on Iranian ports.
- Washington will waive major oil sanctions that have severely affected Iran’s economy.
- Technical negotiations will begin on a comprehensive settlement of Iran’s nuclear programme.
- Iran will dilute portions of its enriched uranium stockpile, potentially through on-site down-blending under the supervision of the International Atomic Energy Agency (IAEA).
Upon conclusion of a final nuclear agreement, the United States will facilitate the establishment of a proposed $300 billion reconstruction and economic recovery fund backed by regional partners.
Diplomatic sources describe the MoU as a framework agreement designed to create confidence-building measures while negotiators work toward a permanent accord.
Shehbaz hails triumph of diplomacy
Prime Minister Shehbaz described the agreement as a victory for diplomacy and dialogue over conflict.
He congratulated President Trump for his commitment to negotiations, saying his preference for peaceful engagement had helped prevent a broader regional catastrophe.
The prime minister also acknowledged the efforts of US Vice President JD Vance, Special Envoys Steve Witkoff and Jared Kushner for their contributions to the negotiations.
On the Iranian side, he praised Supreme Leader Ayatollah Mojtaba Khamenei and President Masoud Pezeshkian for demonstrating “wisdom, foresight and statesmanship” in embracing peace.
He further recognized the role of senior Iranian officials, including Mohammad Bagher Ghalibaf, Foreign Minister Abbas Araghchi and Interior Minister Eskandar Momeni, for their persistence in the negotiations.
Shehbaz also thanked Qatar, Saudi Arabia, Türkiye and Egypt for supporting mediation efforts throughout the crisis.
In a special tribute, the prime minister praised Chief of Defence Forces and Chief of Army Staff Field Marshal Asim Munir, saying his “tireless efforts, selfless dedication and instrumental role were critical in facilitating this breakthrough and advancing the cause of peace and regional stability.”
“May this MoU serve as an enduring foundation for greater understanding, mutual respect and shared prosperity for the entire region,” he said.
President Zardari welcomes historic breakthrough
President Asif Ali Zardari also welcomed the agreement, describing it as “a historic moment for the region and the world.”
In a statement issued by the Presidency, he noted that the conflict had inflicted immense suffering on people across the region while severely disrupting global energy supplies, trade and economic stability.
The president expressed hope that regional nations would now focus on development, prosperity and the welfare of their citizens.
He paid tribute to Prime Minister Shehbaz Sharif, Deputy Prime Minister and Foreign Minister Ishaq Dar, Field Marshal Asim Munir and Interior Minister Mohsin Naqvi for their diplomatic efforts in helping bring the parties to an agreement.
“Pakistan played a principled, balanced and constructive role throughout the crisis, consistently calling for dialogue, restraint and a peaceful resolution of disputes while maintaining engagement with all parties concerned,” the statement said.
Zardari also appreciated the leadership of President Trump, Iran’s Supreme Leader, President Pezeshkian and Foreign Minister Abbas Araghchi for choosing diplomacy over confrontation.
He further acknowledged the support of Qatar, Saudi Arabia, Türkiye, Egypt, Russia and China, whose encouragement of dialogue contributed to the peace process.
Calling for full implementation of the agreement, the president urged all parties to expedite negotiations on a final settlement and ensure that the current understanding evolves into a durable and comprehensive peace arrangement.
“War brings nothing but destruction and misery. Peace is the only path to progress,” he said.
Pakistan emerges as key mediator
The Islamabad MoU marks one of Pakistan’s most significant diplomatic achievements in recent years, elevating Islamabad’s profile as a mediator in a major international conflict.
The agreement also represents a potentially transformative moment for regional stability, global energy markets and international diplomacy, with hopes that the reopening of the Strait of Hormuz and the easing of sanctions will help stabilize oil supplies and restore investor confidence.
As technical talks move forward in Switzerland, the international community will closely watch whether the Islamabad MoU can pave the way for a lasting settlement of the US-Iran dispute and a broader framework for peace and economic cooperation across the Middle East.
