Iran and US Sign Islamabad Memorandum: Strait of Hormuz to Reopen for Commercial Shipping - News and Statistics

Jun 18, 2026

Iran has officially acknowledged signing a memorandum of understanding with the United States to conclude the recent hostilities, clearing the way for the Strait of Hormuz to reopen and for commercial shipping to resume through this critical global maritime passage. Foreign Ministry spokesman Esmaeil Baqaei verified the accord on Thursday, following U.S. President Donald Trump’s announcement of the deal. According to Iran’s state news agency IRNA, both leaders affixed their signatures electronically. Baqaei remarked that the Islamabad Memorandum of Understanding was completed with the presidents’ signatures, and now the focus shifts to testing the agreement’s execution. He indicated that Tehran considered a formal signing ceremony unnecessary after the electronic approvals, though a commemorative event is scheduled for Friday in Switzerland to initiate technical discussions.

The memorandum mandates an immediate and permanent cessation of military actions involving the United States, Iran, and their allies. It establishes a 60-day period for negotiating a final accord, with the possibility of an extension if both parties concur. Iran has pledged to restore safe passage for commercial vessels through the Strait of Hormuz, with commercial traffic resuming at once and full navigation anticipated within 30 days following the completion of mine clearance operations.

The United States will promptly start dismantling its blockade of Iranian ports, aiming for full removal within 30 days. Washington also agreed to lift sanctions, unfreeze Iranian assets, and grant waivers for Iranian oil exports, petroleum products, banking, insurance, and shipping services during the ongoing negotiations. Both nations committed to reaching a comprehensive agreement within 60 days, with a potential extension by mutual agreement.

Iran reiterated its commitment to not develop nuclear weapons and consented to maintain its current nuclear program throughout the talks. The disposition of its enriched uranium will be determined via a mechanism coordinated with the International Atomic Energy Agency (IAEA). The memorandum includes plans for at least US$300 billion in investment from the United States and regional partners to aid Iran’s reconstruction and economic growth. Should the negotiations succeed, both sides intend to pursue a binding United Nations Security Council resolution to endorse the final agreement.

Pakistan Prime Minister Shehbaz Sharif, who facilitated the mediation, confirmed that U.S. President Donald Trump and Iranian President Masoud Pezeshkian signed the memorandum electronically. The reopening of the Strait of Hormuz is anticipated as the initial tangible step under the pact, potentially alleviating pressure on global energy markets and international shipping after months of disruption.

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