US and Iran Sign Historic Islamabad Memorandum; Strait of Hormuz to Reopen

Pakistani Prime Minister Shehbaz Sharif announced on June 17, 2026, that the presidents of the United States and Iran have electronically signed the "Islamabad Memorandum of Understanding," marking a significant diplomatic breakthrough in tensions between the two nations. The memorandum has entered into force immediately, with both countries committing to concrete actions to de-escalate the conflict. As the first steps, Iran will instantly reopen the Strait of Hormuz, a critical global shipping route, while the United States will immediately lift its naval blockade.

Sharif, who served as mediator in the negotiations, expressed honor at facilitating the agreement and praised the leadership of both the US and Iran for their commitment to peaceful resolution. The memorandum represents a historic step toward ending the long-standing tensions that have affected regional and global stability. Sharif also acknowledged the mediation efforts of Qatar, Turkey, Saudi Arabia, and Egypt, which played supporting roles in bringing the parties to agreement.

The reopening of the Strait of Hormuz and the lifting of the US naval blockade are expected to have immediate implications for global energy markets and international trade, as the waterway is one of the world's most critical chokepoints for oil and gas transportation. The agreement signals a shift toward diplomacy and collaborative engagement between Washington and Tehran, with Pakistan's role as a neutral mediator proving instrumental in achieving this breakthrough.