ISLAMABAD: Prime Minister Shehbaz Sharif has signed the historic Islamabad Memorandum of Understanding (MoU) as a mediator, formally sealing a landmark 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, Prime Minister Shehbaz signed the agreement in his role as mediator, while US President Donald Trump and Iranian President Masoud Pezeshkian signed on behalf of their respective countries.
Announcing the development on social media platform X, Prime Minister Shehbaz described the accord as a major diplomatic breakthrough and confirmed that the agreement had entered into force with immediate effect.
Under the terms of the MoU, Iran will instantly reopen the Strait of Hormuz, one of the world’s most critical energy shipping routes, while the United States will immediately lift its naval blockade as the first confidence-building measure under the agreement.
“The signing of this agreement at the highest level of both governments demonstrates the commitment of all sides to a diplomatic resolution of the conflict,” the prime minister said.
Shehbaz Sharif congratulated US President Donald Trump for his commitment to diplomacy and peaceful conflict resolution, saying his efforts helped prevent a wider regional war with potentially devastating consequences.
President Trump reportedly signed the memorandum during a dinner event at the Palace of Versailles following a G7 summit. Video footage shared by members of his team showed him confirming the signing to reporters.
Iran also confirmed the agreement. Foreign Ministry spokesman Esmaeil Baqaei told state news agency IRNA that the document had been finalized with the signatures of both presidents.
The prime minister praised the contributions of senior US officials, including Vice President JD Vance, Special Envoy Steve Witkoff and Jared Kushner, for their roles in the negotiations.
He also expressed appreciation to Iranian Supreme Leader Ayatollah Mojtaba Khamenei and President Masoud Pezeshkian for supporting diplomatic efforts, while recognizing the work of Iranian negotiators Mohammad Bagher Ghalibaf, Abbas Araghchi and Eskandar Momeni.
Prime Minister Shehbaz further acknowledged the support of Qatar, Saudi Arabia, Türkiye and Egypt in facilitating dialogue between the two sides.
He paid special tribute to Pakistan’s Chief of Defence Staff, Field Marshal Asim Munir, stating that his efforts were instrumental in advancing negotiations and helping secure the agreement.
The accord seeks to formally end the conflict that erupted earlier this year between the United States, Israel and Iran, which disrupted regional security and led to the closure of the Strait of Hormuz.
As part of the agreement, Washington has committed to waiving key oil-related sanctions on Iran. The document also outlines plans for a future agreement on Iran’s nuclear programme, after which the United States would facilitate the release of a proposed $300 billion reconstruction fund backed by regional partners.
Prime Minister Shehbaz expressed hope that the Islamabad Memorandum of Understanding would serve as a foundation for lasting peace, greater mutual understanding and economic prosperity across the Middle East and beyond.

