The United States and Iran signed an initial peace agreement on June 18, 2026 [1], to end their ongoing war and restore regional stability.

The agreement is critical because it addresses the closure of the Strait of Hormuz and the economic isolation of Iran, both of which have destabilized global energy markets and security.

The deal consists of a 14-point memorandum of understanding [3]. Under the terms, the U.S. will lift economic sanctions on Iran [5], and the Strait of Hormuz will be reopened to allow safe shipping [4]. These measures aim to resolve the immediate conflict and create a framework for continued nuclear negotiations [2].

Reports on the timing of the agreement vary slightly across agencies. While CNN reported the signing occurred on June 18, 2026 [1], the Associated Press reported the deal on June 17, 2026 [2].

Pakistan played a significant role in facilitating the talks. Prime Minister Shehbaz Sharif said the deal was announced [6], with regional reports indicating that Pakistan emerged as a key mediator between the U.S. and Iran to foster stability [3, 4]. This diplomatic effort followed a week of mediation activity between June 10 and June 17, 2026 [2].

President Donald Trump and President Masoud Pezeshkian are the primary signatories of the memorandum. The agreement focuses on ending the war and restoring the flow of oil through one of the world's most vital maritime chokepoints [2, 3].

While some international news outlets did not immediately mention Pakistan's involvement, regional sources said the mediation by the Sharif administration was essential to the breakthrough [3, 4].

“The U.S. will lift economic sanctions on Iran”

The agreement represents a strategic shift toward de-escalation in the Middle East. By reopening the Strait of Hormuz and lifting sanctions, the two nations are prioritizing the stabilization of global oil prices and maritime trade over the previous policy of maximum pressure. The involvement of Pakistan as a mediator suggests a growing trend of regional powers stepping in to bridge the gap between Washington and Tehran when direct diplomacy fails.