US and Iran Sign 'Islamabad Memorandum' to End 110-Day War and Reopen Strait of Hormuz

The United States and Iran have officially signed the "Islamabad Memorandum of Understanding," pausing a 110-day war that has devastated the Middle East and severely disrupted global energy markets. The preliminary agreement, signed remotely on Wednesday by U.S. President Donald Trump and Iranian President Masoud Pezeshkian, mandates an immediate cessation of hostilities on all fronts.[1][2][6]

Brokered primarily by Pakistan with assistance from Qatar, Saudi Arabia, Turkey, and Egypt, the 14-point framework offers immediate economic and maritime relief while deferring the most intractable issues to a strict 60-day negotiating window.[3][6]

The most immediate global impact is the reopening of the Strait of Hormuz. The vital waterway, which handles roughly one-fifth of global oil shipments, had been effectively closed by the conflict, sending energy prices soaring. Under the MoU, Iran has committed to ensuring the safe passage of commercial vessels for the next 60 days, and the first Saudi-flagged supertankers have already resumed transit.[3]

In exchange, the United States has agreed to immediately dismantle its naval blockade of Iranian ports, a process that must be completed within 30 days. The U.S. has also granted temporary sanctions waivers allowing Iran to sell oil during the 60-day negotiation period, providing a crucial lifeline to Tehran's battered economy.[1][3]

The agreement explicitly extends the ceasefire to allied factions, notably requiring an end to military operations in Lebanon. U.S. officials emphasized that this provision effectively obligates Tehran to rein in Hezbollah, though they noted that Israel—which is not a party to the MoU—retains the right to respond if attacked.[2]

While the cessation of violence brings immediate relief, the MoU leaves the core drivers of the conflict unresolved. The text intertwines future sanctions relief with a final settlement on Iran's nuclear program, setting the stage for highly complex talks.[2][5]

As a preliminary concession, Iran has agreed to down-blend its enriched uranium stockpile on its own soil under the supervision of the International Atomic Energy Agency (IAEA). However, the comprehensive dismantling of Iran's nuclear infrastructure remains a subject for the upcoming negotiations.[2]

To incentivize a final deal, the MoU outlines a commitment by the U.S. and regional partners to develop a $300 billion reconstruction and economic development plan for Iran. The mechanics and funding sources for this massive initiative remain undefined and will be a central focus of the 60-day window.[3][5]

The political reception to the deal has been mixed. In Washington, the Trump administration has framed the MoU as a successful ultimatum, with the President warning that the U.S. is prepared to resume heavy military action if Iran violates the terms.[3]

In Tehran, rival political factions are already clashing over the implications of the agreement. While moderates view the temporary sanctions relief and the end of the blockade as a necessary victory for the Iranian public, hardliners remain deeply skeptical of U.S. commitments and the proposed constraints on the nuclear program.[4]

Legal and geopolitical analysts warn that the 60-day window is highly fragile. Because either side can walk away at any time, the global economy remains in a precarious position. If the talks collapse, the U.S. has signaled it will rapidly reinstate the blockade and escalate economic pressure, potentially plunging the region back into full-scale war.[2][5]