Islamabad, 18 June 2026 — The US Iran deal has been signed, Prime Minister Shehbaz Sharif announced in the early hours of Thursday, as both countries’ presidents electronically endorsed the “Islamabad Memorandum of Understanding,” a landmark agreement that commits Iran to instantly reopening the Strait of Hormuz and the United States to immediately lifting its naval blockade of Iranian ports.
“The memorandum has been signed by honourable presidents of both the countries and also endorsed by me as the mediator. The signing of this agreement at the highest level of the respective governments demonstrates the commitment of both sides to a diplomatic resolution of the conflict,” PM Shehbaz wrote on X.
US Iran deal – What the Islamabad MoU Contains
Under the terms of the US Iran deal agreement, Iran’s reopening of the Strait of Hormuz and the American naval withdrawal are to take effect simultaneously and with immediate force. Washington has also committed to immediately waiving the oil sanctions that have been crippling Iran’s economy since the outbreak of the conflict.
Looking beyond the initial steps, the deal sets out a pathway toward a final agreement on Iran’s nuclear programme. Once that broader agreement is concluded, the United States has committed to facilitating the release of a $300 billion reconstruction fund supported by regional nations. As part of nuclear-related commitments, Iran will dilute its enriched uranium stockpiles, potentially through down-blending conducted on Iranian soil under the supervision of the International Atomic Energy Agency.
How the Signing Unfolded
US President Donald Trump signed the memorandum during a candlelit dinner at the Palace of Versailles, held on the margins of a G7 summit, as French President Emmanuel Macron and other guests applauded. “Just signed it,” Trump told reporters as he emerged from the palace.
Iran’s Foreign Ministry confirmed that the document “was finalised with the signatures of the presidents.” PM Shehbaz later also signed the MoU in his capacity as mediator.
An initial post from the Prime Minister’s Office indicated that Pakistan, with Qatar’s support, would host an official ceremony on 19 June in Switzerland to mark the agreement and commence technical-level talks. That statement was subsequently removed. Iran’s foreign ministry then clarified that, because both presidents had already signed digitally, no formal signing ceremony would take place in Switzerland, though the Swiss government confirmed that preliminary talks between the two sides were planned at the Buergenstock mountaintop resort.
Pakistan’s Role and the Road to the Agreement
The deal represents a significant diplomatic achievement for Islamabad. The conflict that necessitated the agreement began on 28 February 2026, when the United States and Israel launched military operations against Iran. Iran responded with missile and drone strikes across the region and closed the Strait of Hormuz, a chokepoint through which a substantial share of the world’s oil supply passes. The US Navy subsequently imposed a blockade on Iranian ports, sending shockwaves through global energy markets and supply chains.
PM Shehbaz, in his announcement, praised President Trump for his “steadfast commitment to diplomacy and preference for peaceful resolution,” and credited US Vice President JD Vance, special envoys Steve Witkoff and Jared Kushner for their “invaluable contributions.” He also expressed admiration for Iran’s Supreme Leader Ayatollah Mojtaba Khamenei and President Masoud Pezeshkian for their “wisdom, foresight and statesmanship,” and credited Iran’s negotiating team, including Mohammad Bagher Ghalibaf, Abbas Araghchi and Eskandar Momeni, for their patience and commitment.
PM Shehbaz made particular mention of Chief of Defence Forces and Chief of Army Staff Field Marshal Asim Munir, describing his “tireless efforts, selfless dedication and instrumental role” as critical in facilitating the breakthrough. He also acknowledged the contributions of Qatar, Saudi Arabia, Turkiye and Egypt to the mediation effort.
Pakistan’s Leadership Welcomes the Agreement
President Asif Ali Zardari separately welcomed the signing, calling it a historic moment for the region and the world. He described the conflict as having “inflicted immense suffering upon the peoples of the region and caused severe disruption to global energy supplies, trade and economic stability,” and expressed hope that such a crisis would not be repeated.
Zardari paid tribute to PM Shehbaz, Deputy Prime Minister and Foreign Minister Ishaq Dar, Field Marshal Asim Munir and Interior Minister Mohsin Naqvi for their diplomatic efforts, and praised Pakistan’s “principled, balanced and constructive role throughout the crisis.” He also acknowledged the broader support of Russia and China for encouraging dialogue.
“War brings nothing but destruction and misery. Peace is the only path to progress,” the President was quoted as saying.
Published in SouthAsianDesk, June 19, 2026
Follow SouthAsianDesk on X, Instagram and Facebook for insights on business and current affairs from across South Asia.
