The Islamabad Memorandum, officially the Islamabad Memorandum of Understanding between the United States of America and the Islamic Republic of Iran, was a memorandum of understanding (MoU) between the United States and Iran aimed at ending the 2026 Iran war. It was primarily brokered by Pakistan, with Qatar, Saudi Arabia, Turkey and Egypt also facilitating negotiations.
Pakistani prime minister Shehbaz Sharif said that the U.S. and Iran had reached agreement on final text to end the war on 12 June 2026. On 15 June, U.S. vice president JD Vance announced that the memorandum was digitally signed by representatives of the U.S. and Iran on the previous day. On 17 June, Trump and Iranian president Masoud Pezeshkian signed remotely the memorandum of understanding to end the war, with Trump signing it during dinner with French president Emmanuel Macron at the Palace of Versailles following the G7 summit, after which Pezeshkian signed it in Tehran. Iranian supreme leader Mojtaba Khamenei issued a written statement, saying that he endorsed the memorandum of understanding despite misgivings.
The memorandum was a 14-point "framework agreement" and provided for an end to military strikes, the reopening of the Strait of Hormuz to commercial shipping toll-free for 60 days, an end to the U.S. naval blockade of Iranian ports, and a 60-day extension of the ceasefire. Iran indicated that it intended to charge fees for unspecified services to ships transiting through the Strait of Hormuz, though analysts questioned whether this would be legal. Subject to a final deal, the Islamabad Memorandum would also include an at least $300 billion private fund designed to trigger investment in Iran in addition to the release of frozen Iranian assets.
The Islamabad Memorandum also immediately waived, but did not eliminate, sanctions that Trump imposed on Iran's oil exports, allowing Iran once again to sell its crude on the world market and restoring a revenue stream worth hundreds of billions of dollars. The United States waived sanctions on Iran for 60 days on 21 June. Major issues, however, were not settled in the framework agreement, which contains no accord on Iran's nuclear program or uranium stockpiles, although it does call for the downgrading of Iranian uranium from weapons-grade to reactor-grade following a final agreement. These issues are deferred to future talks to take place over the 60-day ceasefire extension. The framework agreement also does not mention the Iranian ballistic missile program or its network of non-state allies in the Middle East.
On 8 July, after the United States and Iran exchanged attacks, Trump declared that the MoU with Iran was "over" and he did not want to continue dealing with the Iranian regime, which he referred to as “sick people.” Trump later indicated that U.S. negotiators can continue negotiations, but he voiced pessimism regarding the potential results.
Background
The Islamabad Talks, were held in Islamabad, Pakistan, on 11 and 12 April 2026. Aimed at stabilizing the 2026 Iran war ceasefire and negotiating a potential resolution to the war, the talks were moderated by Pakistan, which played a central role in brokering the ceasefire and facilitating the talks.
The 300-member U.S. negotiating team was led by Vice President JD Vance, alongside special envoys Steve Witkoff and Jared Kushner; while the 70-member Iranian team was led by parliamentary speaker Mohammad Bagher Ghalibaf, alongside foreign minister Abbas Araghchi. The Pakistani mediating team was led by Prime Minister Shehbaz Sharif, Field Marshal Asim Munir, and Deputy Prime Minister Ishaq Dar. The talks lasted 21 hours between 11 and 12 April 2026, and consisted of three rounds with the first one being indirect and the second and third ones being direct. The day of the meeting, Trump told reporters that he did not care about whether an agreement would come out of the talks.
The teams were reportedly able to agree on the main points of the 10-points ceasefire, with the exception of the issues regarding the Strait of Hormuz and the Iranian nuclear program. The talks ended with no agreement reached, and no memorandum of understanding (MoU) being issued. Following the failure of the talks, U.S. president Donald Trump imposed a naval blockade on Iran on 13 April, interdicting any ships entering or departing Iranian ports.
The United States and Iran reached a final agreed-upon text for a peace deal to end the war on 12 June 2026. On 17 June, Donald Trump and Iranian president Masoud Pezeshkian signed remotely the memorandum of understanding to end the war, which established a 60-day extension of the ceasefire to negotiate the final terms of a deal.
Discussions
On 11 June, key gaps regarding the release of frozen Iranian assets, the reopening of the Hormuz, and protocols for managing Iran's nuclear program during a 60-day ceasefire were narrowed in talks between Iranian officials and Qatari mediators in Tehran, coordinated with the United States. Two days later, Pakistani prime minister Shehbaz Sharif, a key mediator announced that a memorandum of understanding will be digitally signed the following day.
On 14 June, Iran said that the draft US deal included Tehran agreeing not to produce or acquire nuclear weapons, and the US agreeing to allow Tehran to dilute its highly enriched uranium stockpile in Iran. A committment not to obtain nuclear arms, however, is not a new concession by Iran, which already made that pledge in ratifying the Nuclear Non-Proliferation Treaty more than a half-century earlier, and restated that pledge in the 2015 JCPOA.
The same day, US president Donald Trump and Iran announced that they had reached the agreement to end the war and reopen the Strait of Hormuz. Trump also said that he had authorized the lifting of the US naval blockade. However he clarified that if he does not like the agreement with Iran, the United States will "go right back to dropping bombs".
The US military later said that the blockade remained in effect until the agreement was signed on 19 June.
On the eve of the full signing, USA and Iran published the 14-points of the document.
On 18 June, Pakistan stated that the signing of the US-Iran memorandum of understanding to end the war implies Tehran will reopen the Hormuz "instantly" and the American blockade of Iranian ports will end "immediately."
Implementation
Implementation of the Islamabad Memorandum officially began after remote digital signatures by the United States and Iranian presidents. The agreement was expected to establish an immediate and permanent termination of military operations across all fronts, including Lebanon. Both parties committed to an immediate cessation of war. Iran was expected to instantly reopen the Strait of Hormuz and the United States was supposed to begin dismantling its naval blockade.
According to Iranian media, 11 Iranian ships broke through U.S. naval blockade after the Islamabad Memorandum was signed, while sources told the The Jerusalem Post that commercial ships in Hormuz were attracted by multiple Iranian drones after the MoU was agreed upon. The UAE already sent $3 billion of at least $10 billion to be sent to Iran from the UAE after the signing of the Islamabad Memorandum. On 18 June, CENTCOM announced that it had removed the naval blockade of Iranian ports. On 22 June, the US gave Iran-related 60-days general licence for oil sales, as required by the MoU. Israeli defense minister Israel Katz said that the IDF would not withdraw from its southern Lebanon security zone even if Trump asked for it.
Text, gaps, and disputes over scope
The memorandum was a "framework agreement" and the terms remained secret at the time of its signing, although U.S. vice president JD Vance said the U.S. would release the full text later.
The agreement provided an end to military strikes, the reopening of the Strait of Hormuz to commercial shipping, and an end to the U.S. naval blockade of Iranian ports, and a 60-day extension of the ceasefire. Iranian first vice president Mohammad Reza Aref said Tehran would retain control over the Strait of Hormuz, noting that vessels using the strategic waterway should contribute to the cost of services provided by the Islamic Republic to ensure safe navigation. The Islamabad Memorandum also included a $300 billion fund for Iran in addition to the release of frozen Iranian assets, as well as sanctions relief. Major issues, however, were not agreed upon in the framework agreement, which contains no accord on Iran's nuclear program, uranium stockpiles, or sanctions relief. These issues were deferred to future talks to take place over the 60-day ceasefire extension. The framework agreement reportedly contains nothing about Iranian ballistic missile program or its network of non-state allies in the Middle East.
Prior to the framework agreement being signed, the U.S. and Iran described its terms differently. Iranian officials asserted that the U.S. pledges immediate sanctions relief and release of frozen Iranian assets during the 60-day negotiation period following the agreement, but the U.S. denied this. U.S. president Donald Trump claimed that the agreement means the strait will be "permanently toll-free" but Iran said it still intended to charge "fees" (but not "tolls") to ships traversing the Persian Gulf. Primary mediator Pakistan and Iranian officials said that the framework agreement halts "military operations on all fronts, including Lebanon, effective immediately." However, Israel, which was not a party to the agreement and was not directly involved in its negotiation, disputed this and said it "reserved the right" to strike Lebanon in retaliation for attacks by Hezbollah.
Contents
Impact and reactions
Iran
Islamic Consultative Assembly Speaker and Chief Negotiator Islamic Revolutionary Guard Mohammad Bagher Ghalibaf who signed the deal and President Masoud Pezeshkian hailed the deal as step on road to winning. Ayatallah Nabavian, Iran's National Security Commissioner, criticized the deal, saying that there is no space for Iran to exercise management over the Hormuz Strait and comparing US investment in Iran's rebuilding and required opinion on its usage to the United States' colonization of Iran.
Iranian Principlists chanted against Iranian foreign minister Abbas Araghchi, Parliament Speaker and chief negotiator Mohammad Bagher Ghalibaf as they protested the deal with the United States outside a Iran Foreign Ministry office in Mashhad.
Iran's Assembly of Experts issued a statement in June 2026 calling for the assassination of Donald Trump and Benjamin Netanyahu, describing it as a religious duty. The clerics urged the government to take hard line in the truce talks. They also criticized the reopening of the Strait of Hormuz as a strategic mistake and demanded that Iran's nuclear project be kept off the negotiating table.
United States
Trump signed a preliminary version of the document in Versailles, France, while he was visiting the country for the 52nd G7 summit. Vance acknowledged that the agreement was "a very general document" roughly "a page and half" long. Treasury Secretary Scott Bessent anticipated further relief in energy costs for Americans.
Israel
Israel has expressed strong disapproval of the Islamabad Memorandum and intended to continue military operations in Lebanon.
Israel was not part of the U.S.-Iran negotiations over the MoU, and Israeli officials indicated that military operations will continue in Lebanon regardless of the MoU wording. Israel bombed Beirut twice during the U.S.-Iran negotiations, nearly derailing the negotiations each time.
After the preliminary MoU was signed, Pakistan and Iran said that the ceasefire halts "military operations on all fronts, including Lebanon, effective immediately" but Israel rejected this contention (see also 8 April 2026 Israeli attacks on Lebanon). Israeli prime minister Benjamin Netanyahu and the rest of his government said that Israel was not bound by the agreement, with Netanyahu saying that the country would "preserve its freedom of action" against threats from Hezbollah in Lebanon. While combat between Israel and Hezbollah was dialed back in the immediate aftermath of the memorandum's signing, the Hezbollah–Israel conflict continued. Israel conducted a strike south of Beirut on June 14. Israeli defense minister Israel Katz said that Israeli forces would remain in the territory in southern Lebanon seized since the start of the war, adding that the 200,000 displaced Lebanese residents from the security zone would never be allowed to return. Israeli national security minister Itamar Ben-Gvir rejected the memorandum, stating that Israel was "not subordinate to the United States" and that its security was "not up for bargaining". Following the deaths of four Israeli soldiers in southern Lebanon, Ben-Gvir called for Lebanon to be "obliterated" and posted on X that "all of Lebanon must burn." Finance minister Bezalel Smotrich similarly called for "opening the gates of hell" in Lebanon, repeating rhetoric he had previously used in March 2025 regarding the Gaza Strip. A report by the Israeli outlet Channel 14 reported that Netanyahu refused a request by Vance to scale back the IDF's presence in Lebanon.
Gulf states
Officials from Bahrain, Kuwait, Qatar, Saudi Arabia and the United Arab Emirates did not respond directly to the Memorandum, though representatives, former diplomats and analysts expressed their frustrations that the terms published would do nothing to address the Iranian use of drones and shorter-range missiles, noting that the eased financial sanctions would provide Iran with the resources it would need to rebuild its stockpiles of such weapons. Frustrations were registered that American statements early in the war had been to address such weapons, including a statement from U.S. secretary of state Marco Rubio early in the war that one of the American aims of the conflict was to "eliminate the threat of Iran's short-range ballistic missiles."
Financial markets
Oil prices eased and stocks rallied following the news of the potential peace agreement.
Analysis
According to a BBC Persian reporter, the agreement is framed in Iran as a "victory for the country and defeat for the US and Israel." The Guardian reported that "Trump surrenders himself to Iran deal" and that the "deal met with anger, relief and incredulity" in "Israel and among [some] US Republicans.
Due to geographic and geopolitical details, parallels have been drawn between the United States' signing of the Islamabad Memorandum to Weimar Germany's signing of the Treaty of Versailles at the end of World War I.
Violations
On 19 June, US president Donald Trump announced a renewed ceasefire between Israel and Hezbollah, facilitated by the US, Qatar, and Iran. Hezbollah announced an attack on Israeli forces attempting to capture Ali al-Taher in Nabatieh. Israel continued to strike southern Lebanon numerous times. On 20 June, Iran declared that it closed the Strait of Hormuz again due to Israeli strikes in Lebanon, describing them as a violation of its deal with the US. This claim was denied by the US military. Shipping was stalled in the Strait of Hormuz following Iran's claimed closure of the strait. Some vessels approaching the strait deactivated their automatic identification systems to cross near the Omani shoreline and avoid Iranian military detection. The MoU signed between the US and Iran included a clause stating that both parties will avoid threats or the use of force against each other. On 21 June, Trump issued a threat to invade Iran if they closed the Strait of Hormuz, following Iran's claim of its closure due to Israeli strikes in Lebanon. He warned that they "won't even make it back to their fucking country," suggesting a potential threat against Iranian negotiators in Switzerland.
On 26 June, Iranian state media reported that at least three foreign oil tankers which tried to cross the Hormuz “without authorisation” from Iran had turned back after an Iranian warning. On the same day, Trump accused Iran of violating the truce with US by launching drone attacks on ships in the Hormuz. The United States Central Command later announced that in retaliation to the alleged truce violations, the US hit Iranian missile and drone storage facilities, as well as coastal radar stations. Iran said that its retaliation to the attack will be "swift and decisive," prior to deleting the statement. On 27 June, Iran said it targeted American sites in the Gulf region in response to the attack. The same day, the US military announced it struck Iranian military surveillance infrastructure, communication systems, air defense sites, drone storage facilities, and minelayer capabilities at the commander-in-chief's direction in retaliation to another alleged Iranian attack against a ship in the Hormuz. Trump accused Iran of repeatedly violating the ceasefire memorandum, expressing doubt about their ability to learn from past mistakes. He warned of a potential point where the U.S. will be forced to "complete the job" militarily, stating that if this occurs, the Iranian regime could cease to exist. On 28 June, Iran said it fired ballistic missiles and drones towards the US Ali Al Salem Air Base in Kuwait and the US Fifth Fleet headquarters in Bahrain in retaliation to American attacks against five Iranian coastal sites. On 7 July, Iran reportedly launched missiles at commercial vessels in the Strait of Hormuz, including the Al Rekayyat, a Qatari LNG tanker, causing significant damage. Iranian state TV claimed one of those vessel was struck for ignoring warnings, though Iran did not take direct responsibility. Qatar accused Iran of violating international law. Additionally, the UK military reported another tanker was hit by an unidentified projectile in the Strait of Hormuz. The U.S. announced a revocation of a license which authorized Iran oil sales as retaliation for the attacks, while Saudi Arabia condemned the attacks against both their and the Qatari tanker. The same day, the US Central Command announced that the US struck over 80 Iranian targets including air defense systems, coastal radar sites and dozens of IRGC small boats to degrade Iranian capability to disrupt international maritime trade using precision munitions in retaliation to alleged Iranian truce violations. Iran accused the US of violating the memorandum that concluded the war by reinstating oil sanctions. Iran said that it shot down an American MQ9 drone in southern Iran. Iran later announced that it targeted 85 American military targets in Bahrain, Kuwait in retaliation to alleged truce breaches. Iran later added that it targeted an American base in Bahrain. IRGC Navy announced that one of its soldiers was killed in a US drone attack. On 10 July, exclusive satellite images obtained and analyzed by CNN in collaboration with the Institute for Science and International Security showed signs Iranian regime may be trying to rebuild its nuclear sites in apparent breach of the mou, even before Trump appeared to signal its end by launching new strikes on the nation.