Prime Minister Shehbaz Sharif signed the Islamabad Memorandum of Understanding on June 18, 2026 [1], positioning Pakistan as a mediator between the U.S. and Iran.
This agreement marks a significant diplomatic shift in West Asia. By acting as a guarantor, Pakistan seeks to facilitate a peace deal that could stabilize the Middle East and reopen a vital global energy route [1].
The electronic signing of the MoU involves the U.S. and Iran, with Pakistan providing the framework for endorsement [1]. The agreement is named after the Pakistani capital, Islamabad, where the diplomatic coordination centered [1].
According to reports, the initiative is designed to promote long-term peace and stability across the region [1]. The role of the Pakistani government is to serve as a neutral party to ensure the terms of the memorandum are upheld by both global powers [1].
Prime Minister Sharif said the signing of the document establishes the groundwork for improved relations between Washington and Tehran [1]. The move leverages Pakistan's geographic and political position to bridge the gap between the two nations [1].
While the specific terms of the peace deal remain under review, the primary objective is the reduction of tensions in West Asia [1]. The involvement of a third-party guarantor like Pakistan is intended to provide a layer of security, and verification, for the commitments made by the U.S. and Iran [1].
“Pakistan signs as guarantor for US-Iran peace deal”
The Islamabad MoU elevates Pakistan's role from a regional player to a strategic mediator between two historically adversarial superpowers. If successful, this arrangement could reduce the risk of conflict in the Persian Gulf and stabilize global oil markets by securing critical energy transit corridors.



