Prime Minister Shehbaz Sharif announced early Thursday that the Islamabad Memorandum of Understanding (MoU) between the United States and Iran had officially entered into force after both countries signed the agreement electronically.
In a post on X, the prime minister said the accord had received the signatures of US President Donald Trump and Iranian President Masoud Pezeshkian. He added that he had endorsed the agreement in his role as mediator.
“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,” Shehbaz wrote.
The announcement marks the most significant diplomatic breakthrough since the conflict erupted on February 28, when the United States and Israel launched military strikes against Iran. Tehran later responded with missile and drone attacks across the region, escalating tensions and disrupting global energy markets.
Shehbaz said the agreement would take effect immediately.
“The MoU shall enter into force with immediate effect and as a first step, Islamic Republic of Iran will instantly reopen the Strait of Hormuz and the United States of America will immediately lift the naval blockade,” he said.
Strait of Hormuz to Reopen as Sanctions Relief Begins
The reopening of the Strait of Hormuz is expected to restore one of the world’s most important energy corridors. The strategic waterway carries a significant share of global oil shipments and has remained heavily disrupted during the conflict.
Trump confirmed the signing after attending a candlelit dinner at the Palace of Versailles following the G7 summit in France.
“Just signed it,” Trump told reporters as he left the palace.
Meanwhile, Iranian Foreign Ministry spokesman Esmaeil Baqaei confirmed the agreement through state news agency IRNA.
“The document was finalised with the signatures of the presidents,” he said.
Earlier, Shehbaz stated that Pakistan, with support from Qatar, would host an official signing ceremony in Switzerland on June 19. However, Iranian officials later clarified that no ceremony would take place because both presidents had already completed the signing process digitally.
According to Iranian foreign ministry spokesperson Esmaeil Baghaei, “No signing ceremony will be held in Switzerland”.
Nuclear Talks and Reconstruction Fund Remain Key Priorities
The agreement also outlines major economic and diplomatic commitments.
According to details released by US officials, Washington will immediately waive oil sanctions that have severely affected Iran’s economy. Furthermore, once both sides reach a final agreement on Iran’s nuclear programme, the United States will facilitate a $300 billion reconstruction fund backed by regional countries.
The deal also requires Iran to reduce its enriched uranium stockpile. Officials said Tehran could achieve this through “down-blending on site under the supervision of the IAEA”.
Shehbaz congratulated Trump for helping secure the agreement.
“Your steadfast commitment to diplomacy and preference for peaceful resolution have once again helped end a conflict that could have led to devastating consequences for the region and beyond,” he wrote.
The prime minister also praised Iran’s leadership, Qatar, Saudi Arabia, Turkiye, Egypt and Pakistan’s Chief of Defence Forces, Field Marshal Asim Munir, for supporting efforts that led to the breakthrough.
Analysts say the agreement offers a pathway toward regional stability. However, negotiators must still resolve key issues surrounding Iran’s nuclear activities before a permanent settlement can emerge.
