

Key Points:
Donald Trump and Iranian President Masoud Pezeshkian virtually signed the US Iran deal in Paris, France.
The Islamabad MoU has taken effect immediately with lifting Washington's naval blockade against Iran within 30 days.
The agreement was signed in the presence of French President Emmanuel Macron who wrote on X that the deal will pave way for lasting peace.
ON JUNE 18, 2026, the Trump administration signed the US-Iran Memorandum of Understanding (MoU), aimed at ending the long-standing war in the Middle East that began on February 28, 2026. The deal was signed during a dinner with French President Emmanuel Macron following the conclusion of the G7 Summit.
The 14-point MoU was signed virtually by U.S. President Donald Trump and Iranian President Masoud Pezeshkian in Paris, France. The agreement took immediate effect following the signatures of both parties, according to mediator and Pakistani Prime Minister Shehbaz Sharif. He expressed his honour and stated, “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.”
Sharif further noted that, as part of the Islamabad MoU taking effect, the Islamic Republic of Iran will immediately reopen the Strait of Hormuz, which was closed by Tehran as a form of retaliation after the war began in the Middle East. He further added that the United States of America will “immediately lift the naval blockade.”
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The newly signed agreement between the two countries in conflict immediately halts all hostilities in the affected regions and provides a maximum period of 60 days to reach a final deal.
In a video shared by President Macron, Secretary of State Marco Rubio was standing behind the President of the United States (POTUS) as he signed the deal. Just after signing the agreement, Trump held it up and said, “This was not easy, that I can tell you.”
The tensions involving Iran sent ripple effects across the globe, with the global economy and financial markets taking a massive hit. Amid growing calls for a resolution and the de-escalation of tensions in the Middle East, the Islamabad MoU was signed and made public on June 18, 2026.
The Islamabad MoU states, “The United States of America and the Islamic Republic of Iran commit to negotiating and achieving a final deal within a maximum of 60 days, extendable with mutual consent.” The POTUS had earlier mentioned that the deal was supported by various world leaders attending the G7 Summit, including Prime Minister Narendra Modi.
Along with lifting Washington's naval blockade against Iran within 30 days, the document states that the United States will withdraw its forces from Iran as well. The U.S. military had launched three attacks on vessels for allegedly violating its blockade of the Middle Eastern country.
On June 10, 2026, an oil tanker named Settebello was attacked, in which three Indian seafarers were killed. The Indian Ministry of External Affairs condemned the attack, calling it “worrisome.” The memorandum also reaffirms that Iran will neither procure nor develop nuclear weapons, while also calling for an end to attacks across all affected regions, including Lebanon. The MoU further states that the United States and its partners will provide a reconstruction and economic development program for Iran worth USD 300 billion.
Sharing the video on X, President Macron wrote, “This agreement paves the way for lasting peace and allows the reopening of the Strait of Hormuz.” He added, “It is an important step in the right direction for our compatriots and will soon enable a decrease in energy prices.”
Shehbaz Sharif expressed his gratitude to all the leaders who played a role in reaching this moment and wrote, “May this Memorandum of Understanding serve as an enduring foundation for greater understanding, mutual respect, and shared prosperity across the entire region.”
[Edited by Khushboo Singh]
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