U.S. and Iran Sign 'Islamabad Memorandum' to End War and Reopen Strait of Hormuz

The United States and Iran have officially signed the "Islamabad Memorandum of Understanding," a sweeping framework agreement designed to end the 110-day war between the two nations. The pact, brokered heavily by Pakistan, mandates an immediate halt to military operations on all fronts, the lifting of the U.S. naval blockade, and the reopening of the Strait of Hormuz to commercial shipping.[3][7]

U.S. President Donald Trump signed the document remotely while attending the G7 summit at the Palace of Versailles in France, while Iranian President Masoud Pezeshkian affixed his signature in Tehran. Pakistani Prime Minister Shehbaz Sharif also signed the document as the primary mediator, declaring that the agreement takes effect immediately.[3][7]

In his first public statement since the signing, Iran's new Supreme Leader, Mojtaba Khamenei, revealed that he had personally held a "different view" on the agreement but ultimately authorized it. In a written message published on his Telegram channel and broadcast by state media, Khamenei stated he gave his permission based on commitments from President Pezeshkian and the Supreme National Security Council that Iran's rights would be safeguarded.[1][2][5]

Khamenei emphasized that agreeing to the memorandum does not equate to capitulation. He asserted that future face-to-face negotiations with the United States "will not mean accepting the enemy's position," and claimed that the U.S. administration pursued the deal "out of weakness and need." He warned that Iran would not tolerate excessive demands during the upcoming talks.[1][5][6]

The 14-point memorandum establishes a 60-day window for direct negotiations to reach a final, comprehensive peace treaty. These talks, expected to begin in Switzerland, will focus heavily on Iran's nuclear program. U.S. officials have stated that the goal is to secure commitments from Tehran to dismantle its highly enriched uranium stockpiles in exchange for phased sanctions relief.[3][4]

The economic impacts of the preliminary deal were immediate. Within hours of the signing, maritime tracking data showed at least 10 commercial vessels transiting the Strait of Hormuz, ending a months-long freeze that had trapped hundreds of ships in the Persian Gulf and the Gulf of Oman. Global oil prices tumbled on the news, and U.S. stock markets rallied to record highs.[4]

Under the terms of the MoU, the United States is required to begin lifting its naval blockade immediately, with full removal mandated within 30 days. In return, Iran is obligated to restore pre-war traffic levels through the Strait. However, U.S. officials cautioned that broad sanctions relief is strictly tied to a final settlement on the nuclear question, noting that either side can walk away if the 60-day talks collapse.[3][7]

A significant complication looms over the agreement's requirement for a "permanent termination of military operations on all fronts, including in Lebanon." While the U.S. and Iran have committed their respective allies to the ceasefire, Israel—which is not a signatory to the MoU—has signaled it will not be bound by the terms regarding its northern border.[3][4]

Israeli Prime Minister Benjamin Netanyahu forcefully rejected the idea of withdrawing Israeli forces from their security zone in southern Lebanon. "Just as we restored security and prosperity to the Gaza envelope, so we will restore security and prosperity to the northern communities," Netanyahu stated, setting up a potential diplomatic clash, as Iran considers the continued presence of Israeli troops in Lebanon a violation of the agreement.[4]

Despite the fragility of the Lebanon clause, the core U.S.-Iran de-escalation is moving forward. If the 60-day negotiations succeed, the final deal could include a massive reconstruction and economic development program for Iran, reportedly valued at up to $300 billion, supported by the U.S. and regional partners. For now, both capitals are claiming a tactical victory while preparing for grueling technical talks.[3][7]