U.S., Iran sign peace agreement to end four-month war

The United States  (U.S) and Iran have formally agreed to end their four-month armed conflict through a Memorandum of Understanding (MoU) brokered with the support of Pakistan.

The breakthrough was announced by Shehbaz Shari, Pakistan’s Prime Minister, who said the agreement—referred to as the “Islamabad Memorandum of Understanding”—was signed electronically by the leadership of both countries and endorsed through his mediation role.

Under the terms of the initial framework, Iran is expected to immediately reopen the Strait of Hormuz, a key global oil shipping route, while the United States will lift its naval blockade on Iranian ports as part of early de-escalation measures.

The agreement was reportedly finalized after signatures were exchanged digitally between the parties, following engagements involving U.S. President Donald Trump and Iranian officials.

A major component of the deal includes the establishment of a $300 billion support fund for Iran, alongside the release of frozen assets and easing of sanctions.

However, more complex issues—particularly Iran’s nuclear programme, enriched uranium stockpiles, and regional security concerns—were not resolved in the initial agreement and have been pushed to a structured 60-day technical negotiation phase.

Further discussions will focus on verification mechanisms, nuclear oversight, and broader security guarantees, with Pakistan and Qatar continuing their mediation roles.

Prime Minister Sharif described the development as a significant diplomatic breakthrough and credited multiple regional and international actors for supporting the peace process.

The conflict, which began in late February following coordinated military strikes, had continued intermittently despite a ceasefire attempt earlier in April before the latest agreement brought formal closure to active hostilities.