PM Shehbaz signs Islamabad MoU as mediator, formalising US-Iran peace agreement

ISLAMABAD: Prime Minister Shehbaz Sharif on Thursday announced that he has signed the Islamabad Memorandum of Understanding (MoU) as mediator, formally sealing a historic peace agreement between the United States and Iran aimed at ending months of conflict and restoring regional stability.

According to a statement issued by the Prime Minister’s Office, the memorandum was signed electronically by US President Donald Trump and Iranian President Masoud Pezeshkian on behalf of their respective countries, while Prime Minister Shehbaz Sharif endorsed the agreement in his role as mediator.

In a statement shared on X, the prime minister said the memorandum had entered into force with immediate effect and that, as its first step, Iran would instantly reopen the Strait of Hormuz while the United States would immediately lift its naval blockade.

He said the agreement reflected the commitment of both governments to resolving the conflict through diplomacy and expressed hope that it would pave the way for lasting peace, mutual respect and regional prosperity.

The prime minister congratulated President Trump for what he described as his commitment to diplomacy and peaceful conflict resolution, saying the agreement had helped avert potentially devastating consequences for the region and beyond.

According to reports, President Trump signed the memorandum during a dinner at the Palace of Versailles following the G7 summit, while Iranian Foreign Ministry spokesman Esmaeil Baqaei confirmed that the document had also been signed by the Iranian president.

Shehbaz Sharif also acknowledged the efforts of the US negotiating team, including Vice President JD Vance, Special Envoy Steve Witkoff and Jared Kushner, for their contributions to the diplomatic process.

The prime minister expressed appreciation for Iranian Supreme Leader Ayatollah Mojtaba Khamenei and President Masoud Pezeshkian, praising their leadership in supporting the peace initiative. He also recognised the role of the Iranian negotiating team, including Mohammad Bagher Ghalibaf, Abbas Araghchi and Eskandar Momeni.

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He further thanked Qatar, Saudi Arabia, Turkiye and Egypt for supporting efforts to reduce tensions, while paying special tribute to Chief of Defence Forces Field Marshal Syed Asim Munir, saying his efforts played a critical role in facilitating the diplomatic breakthrough.

The agreement is intended to bring an end to the conflict that began on February 28 following US and Israeli strikes on Iran, which triggered Iranian missile and drone attacks across the region and led to the closure of the Strait of Hormuz and a US naval blockade of Iranian ports.

Under the memorandum, Washington has also committed to immediately waive oil sanctions on Iran. The agreement further provides that, once a final settlement is reached on Iran’s nuclear programme, the United States will facilitate the release of a $300 billion reconstruction fund backed by regional countries.

The agreement had initially been expected to be signed in person by Iranian chief negotiator and parliament speaker Mohammad Bagher Ghalibaf and US Vice President JD Vance, but Iranian authorities later said an in-person ceremony was no longer required.