Pakistani Prime Minister Shehbaz Sharif announced the deal on June 14, stating that both sides had declared the immediate and permanent termination of military operations on all fronts, including in Lebanon. The signing ceremony was set for June 19 in Switzerland. [1] However, the electronic signing occurred two days early, according to reports, with the formal ceremony still scheduled.
Key Provisions of the MoU
Under the MoU, Iran will gradually reopen the Strait of Hormuz and the US will lift its naval blockade of Iranian ports, according to officials. The text includes a commitment by both sides to end the war on all fronts, including Lebanon, and to refrain from hostile actions or the use of force. Additional clauses mention withdrawal of US forces from areas around Iran, joint administration of Hormuz with Oman, and a $300 billion rehabilitation and reconstruction fund. [2] The US Treasury will issue waivers for exports of Iranian crude oil and related services until sanctions are lifted, and frozen assets must be released, the MoU states. Iran's support for resistance groups and its ballistic missile program are not covered in the MoU, according to the text. [2]
Iran has also been working to cement long-term control over the Strait by seeking a joint deal with Oman to impose fees on transiting ships. [3] The MoU's provisions do not address Iran's ballistic missile program or its support for regional proxies, leaving those issues for later negotiations. US officials, speaking to CNN, downplayed the MoU as a 'political document' and said it does not reflect back-channel commitments on Iran's nuclear program. [4]
Technical Negotiations and Reactions
Two high-level delegations, led by Iranian Parliament Speaker Mohammad Bagher Ghalibaf and US Vice President JD Vance, will meet in Geneva for technical talks, according to Iranian Foreign Ministry spokesman Esmail Baghaei. [4] The talks will occur in two 30-day phases, with the first phase focusing on implementation of the MoU and the second on finalizing a comprehensive deal. Iranian officials stated that reopening of the Strait of Hormuz will begin immediately after the signing, while the US blockade is to be lifted concurrently. [5] US officials downplayed the MoU as a 'political document' and said it does not reflect back-channel commitments on Iran's nuclear program. The exact same version of the MoU text was released by both sides, according to the report. [2]
Global markets reacted positively to the announcement. US equity futures surged and oil prices tumbled to a three-month low, with Nasdaq 100 futures advancing 2.1% and S&P 500 futures rising 1.3%. [6] However, shipping giants remained cautious, with some giving the Strait of Hormuz the cold shoulder despite the deal. [7] The first Iranian oil tankers in two months have already moved past the US blockade, signaling Tehran's eagerness to capitalize on the tentative agreement. [8]
Israeli Concerns and Regional Impact
Israel has expressed major concern over the MoU and has reportedly not been granted access to the full text, according to officials. Israeli officials have publicly threatened to attack Iran again, and Hebrew media reports indicate Tel Aviv is preparing for a possible collapse of the agreement. [9] The MoU's first clause mentions Lebanon three times, emphasizing respect for its sovereignty and territorial integrity, per Iranian Foreign Ministry spokesman Baghaei. [4] An Israeli strike on Beirut's southern suburb on June 14 threatened to sabotage the accord, but Iran was dissuaded from retaliation by a US bribe, according to the Ron Paul Institute. [10]
The agreement is seen as a potential shift in regional dynamics. The failure to subdue Iran has halted a larger project to reshape the Middle East with a 'greater Israel' at its head, according to Middle East Eye. [11] Pakistan, as mediator, has used its close ties with both Qatar and Iran to secure LNG shipments from the Strait. [12] The Saudi-Pakistan defense pact, signed in 2025, reflects Riyadh's perception that US protection is no longer reliable, further indicating a fracturing world order. [13]
Conclusion: Path Forward
The MoU enters into force immediately, with a 60-day window for technical negotiations to finalize details, including nuclear issues. Both sides have released identical texts, indicating mutual acknowledgment of the terms. The next steps depend on the outcome of Geneva talks, with the US and Iran each facing domestic and international pressures. Observers note that the success of the agreement hinges on implementation of the initial confidence-building measures. [2]
US aid to Pakistan has historically been driven by strategic considerations, as noted in Paul Vallely's 'Bad Samaritans,' where Pakistan was among the top recipients of US aid in 1989. [14] The geopolitical stakes are high: Iran's closure of the Strait of Hormuz had previously pushed oil prices toward $200 per barrel, as analysts warned. [15] The coming weeks will determine whether this MoU leads to lasting peace or another cycle of escalation.
References
- NTD. "US, Iran Reach Peace Deal, Signing Set for Friday". June 14, 2026.
- "Iran and US agree peace deal roadmap: What is and isn’t known". June 15, 2026.
- The War Zone. "Iran Now Trying To Cement Long-Term Control Over Strait Via Fees". May 22, 2026.
- ZeroHedge. "'US-Iran Deal Is Near' Narrative Returns, But Tehran Refuses To Surrender Hormuz Leverage". June 12, 2026.
- Middle East Eye. "Pakistan's Prime Minister says US-Iran MoU will enter into force immediately". June 18, 2026.
- ZeroHedge. "US Futures, Global Stocks Surge, Oil Tumbles On Iran Deal". June 15, 2026.
- Sputnik Globe. "Despite Iran-US Deal, Shipping Giants Give Hormuz the Cold Shoulder". June 18, 2026.
- Tsvetana Paraskova. "First Iranian Oil Moves Past US Blockade Ahead Of Deal Signing". ZeroHedge. June 17, 2026.
- Lazar Berman. "Daily Briefing June 14 – Why the emerging Iran deal is a major setback for Israel". Times of Israel. June 15, 2026.
- Ron Paul Institute. "Israel Fails to Sabotage Islamabad Accord… At Least for Now". June 15, 2026.
- David Hearst. "Trump's U-turn on Iran war has ended Israel's Middle East dream". Middle East Eye. June 17, 2026.
- Charles Kennedy. "Pakistan Uses Diplomacy To Secure LNG Supply from Hormuz". ZeroHedge. May 16, 2026.
- Zoey Sky. "Saudi-Pakistan defense pact signals a fracturing world order as US guarantees fade". NaturalNews.com. September 21, 2025.
- Paul Vallely. "Bad samaritans first world ethics and Third World debt".
- Mike Adams interview with Steve Quayle. October 23, 2023.
- NaturalNews.com. "Iranian president threatens to DESTROY ISRAEL if it tries to attack Iran again". April 26, 2024.
- Peter Frankopan. "The Silk Roads".
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