Prime Minister Shehbaz Sharif has formally signed the Islamabad Memorandum of Understanding (MoU) as mediator, marking a major diplomatic breakthrough in efforts to end the conflict between the United States and Iran.
According to a statement issued by the Prime Minister’s Office, US President Donald Trump and Iranian President Masoud Pezeshkian signed the document on behalf of their respective countries, while Prime Minister Shehbaz endorsed the agreement in his role as mediator.
Islamabad MoU Comes Into Effect Immediately
Prime Minister Shehbaz announced on Thursday that the agreement had been electronically signed by both sides and would take effect immediately.
In a post on X, the premier said the memorandum demonstrated the commitment of both countries to resolving the conflict through diplomacy.
He stated that, as the first step under the agreement, Iran would instantly reopen the Strait of Hormuz, while the United States would immediately lift the naval blockade imposed during the conflict.
“The memorandum has been signed by honourable presidents of both the countries and also endorsed by me as the mediator,” the prime minister wrote.
I am honoured to announce that the historic ‘Islamabad Memorandum of Understanding’ has been electronically signed today between the United States of America and the Islamic Republic of Iran. The Memorandum has been signed by honourable Presidents of both the countries and also…
— Shehbaz Sharif (@CMShehbaz) June 18, 2026
PM Shehbaz Praises Trump’s Role
Prime Minister Shehbaz congratulated US President Donald Trump and praised his commitment to diplomacy and peaceful conflict resolution.
He said Trump’s efforts had helped prevent a wider regional conflict that could have produced devastating consequences beyond the Middle East.
According to reports, Trump signed the memorandum during a dinner at the Palace of Versailles following the G7 summit. Video footage shared by a Trump aide showed French President Emmanuel Macron and other guests applauding the signing.
“Just signed it,” Trump told reporters after the event.
Iran Confirms Signing of Agreement
Iranian Foreign Ministry spokesman Esmaeil Baqaei confirmed that the document had been finalized with the signatures of both presidents.
The spokesman also praised the efforts of the US negotiating team, including Vice President JD Vance, Special Envoy Steve Witkoff and Jared Kushner.
Prime Minister Shehbaz, meanwhile, expressed gratitude to Iranian Supreme Leader Ayatollah Mojtaba Khamenei and President Masoud Pezeshkian for supporting the peace initiative.
He also commended members of the Iranian negotiating team, including Mohammad Bagher Ghalibaf, Abbas Araghchi and Eskandar Momeni.
Regional Countries and Asim Munir Acknowledged
The prime minister acknowledged the support and engagement of Qatar, Saudi Arabia, Turkiye and Egypt during the negotiations.
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Also read: Trump and Iran’s Pezeshkian Sign Deal to End War, Further Talks Scheduled Over Next 60 Days
He also paid tribute to Chief of Defence Staff Field Marshal Asim Munir, saying his efforts played an important role in facilitating the diplomatic breakthrough and promoting regional stability.
PM Shehbaz expressed hope that the Islamabad Memorandum of Understanding would become a lasting foundation for peace, mutual respect and shared prosperity across the region.
Agreement Includes Sanctions Relief and Reconstruction Fund
The agreement seeks to end the war that began on February 28 and resulted in missile and drone attacks across the region, as well as the closure of the Strait of Hormuz.
Under the terms of the memorandum, Washington has agreed to immediately waive oil sanctions that have severely affected Iran’s economy.
The deal also states that once a final agreement on Iran’s nuclear programme is reached, the United States will facilitate the release of a $300 billion reconstruction fund supported by regional countries.
Earlier plans called for US Vice President JD Vance and Iranian Parliament Speaker Mohammad Bagher Ghalibaf to sign the agreement in person, but Tehran later said a formal ceremony was no longer necessary.
Islamabad :18 June 2026.
Prime Minister of Pakistan Muhammad Shehbaz Sharif signed the Islamabad Memorandum of Understanding (Islamabad MoU)، as mediator.
The Islamabad MOU has been signed by President of USA Donald J. Trump and Iranian President Masoud Pezeshkian. pic.twitter.com/M0LKK9XoK8
— Prime Minister’s Office (@PakPMO) June 18, 2026
🚨 President Donald J. Trump has SIGNED the Iran Memorandum of Understanding at Versailles in France. 🇺🇸 pic.twitter.com/JQ6qlbvFAF
— The White House (@WhiteHouse) June 17, 2026
