Pakistan PM Signs Historic Mediation MoU as U.S. and Iran Seal Peace Agreement

Pakistani Prime Minister Shehbaz Sharif on Thursday signed the Islamabad Memorandum of Understanding (MoU) as the official mediator in a landmark peace agreement between the United States and Iran, marking a significant diplomatic breakthrough after months of conflict.

The agreement, which entered into force with immediate effect, was electronically signed by U.S. President Donald Trump and Iranian President Masoud Pezeshkian, with Sharif endorsing the document as mediator. In a post on X, Sharif announced that the MoU "shall enter into force with immediate effect and as a first step, Iran will instantly reopen the Strait of Hormuz and the United States will immediately lift the naval blockade." Trump signed the document during a candlelit dinner at the Palace of Versailles following a G7 summit, as host French President Emmanuel Macron and other guests applauded, according to a video posted by a Trump aide.

The Islamabad MoU aims to end the war that began February 28, triggered by U.S.-Israeli strikes on Iran and Iran's subsequent missile and drone counterattacks, which effectively shut down the Strait of Hormuz, a crucial waterway for global energy shipments. The U.S. responded by imposing a naval blockade on Iranian ports. As part of the first steps, Washington also committed to immediately waive oil sanctions that have crippled Iran's economy.

Sharif extended congratulations to Trump, praising his "steadfast commitment to diplomacy and preference for peaceful resolution," and expressed "profound respect and appreciation" to Iranian Supreme Leader Ayatollah Mojtaba Khamenei and President Pezeshkian for their "wisdom, foresight and statesmanship." He also acknowledged the contributions of various mediators, including Qatar, Saudi Arabia, Turkey and Egypt, as well as the U.S. negotiating team of Vice President JD Vance, Special Envoy Steve Witkoff and Jared Kushner, and the Iranian team of Mohammad Bagher Ghalibaf, Abbas Araghchi and Eskandar Momeni.

The agreement also stipulates that once a final accord is reached on Iran's nuclear program, the United States will facilitate the release of a $300 billion reconstruction fund supported by regional partners, according to sources. The prime minister expressed hope that the MoU would serve as "an enduring foundation for greater understanding, mutual respect and shared prosperity for the entire region," highlighting Pakistan's role in facilitating dialogue and promoting regional stability.