US and Iran Reach Historic Peace Deal, 14-Point Plan Out
The United States and Iran have confirmed reaching a historic memorandum of understanding (MoU) to end their nearly four-month war, with Iranian media publishing the full 14-point content of the agreement on Monday. The breakthrough, brokered by Pakistan, Qatar, Saudi Arabia, and Turkey, brings an immediate and permanent cessation of military operations on all fronts, including Lebanon, and paves the way for the reopening of the Strait of Hormuz.
President Donald Trump announced on Truth Social on Sunday that “the deal with the Islamic Republic of Iran is now complete,” simultaneously authorizing the “toll free opening” of the Strait of Hormuz and the immediate removal of the US naval blockade of Iranian ports. Iran’s Supreme National Security Council confirmed the MoU was finalized on the evening of June 14, stating that “the war and military operations on all fronts, including Lebanon, will end immediately and permanently as of tonight.”
The Islamabad Memorandum
Named after the Pakistani capital where negotiations were primarily hosted, the “Islamabad Memorandum” was first drafted on May 28 and finalized on June 12. The formal signing ceremony is scheduled for Friday, June 19, in Switzerland, with US Vice President JD Vance and Iranian Parliament Speaker Mohammad Bagher Ghalibaf set to sign the document.
According to the Times of India and Mehr News Agency, the 14-point agreement includes:
- An immediate and permanent end to military operations on all fronts, including Lebanon
- US commitment not to interfere in Iran’s internal affairs and to respect Iranian sovereignty
- Complete lifting of the naval blockade within 30 days
- Withdrawal of US forces from areas surrounding Iran
- Reopening of the Strait of Hormuz within 30 days under Iranian arrangements
- Suspension of sanctions on Iranian oil, petrochemical products, and related exports
- Full Iranian access to revenues generated from energy exports
- US and allied commitment to present reconstruction plans worth at least $300 billion for Iran
- A 60-day negotiating period to reach a final agreement on nuclear issues and broader sanctions relief
- Iran’s renewed commitment under the Nuclear Non-Proliferation Treaty not to produce nuclear weapons
- US commitment not to increase military deployments in the region and not to impose new sanctions during negotiations
- Release of $24 billion in frozen Iranian assets during the negotiation period
- Establishment of a supervisory mechanism to oversee implementation
- Final agreement to be endorsed through a United Nations Security Council resolution
Key Negotiators and Mediators
Pakistani Prime Minister Shehbaz Sharif announced on X/Twitter that “following intensive talks, we are pleased to announce that the Peace Deal between the United States of America and Islamic Republic of Iran has been REACHED.” Pakistan served as the primary facilitator, with Qatar, Saudi Arabia, and Turkey also playing crucial mediating roles.
The US negotiating team was led by Vice President JD Vance, alongside special envoys Jared Kushner and Steve Witkoff. Iran’s delegation was headed by Parliament Speaker Mohammad Bagher Ghalibaf and Foreign Minister Abbas Araghchi. The Pakistani mediating team included Prime Minister Shehbaz Sharif, Field Marshal Asim Munir, and Deputy PM Ishaq Dar.
Economic Impact
The announcement sent shockwaves through global energy markets. According to NBC News, oil prices dropped sharply, with NYMEX crude falling to $80.25 per barrel (down 5.45%) and Brent crude dropping to $83.51 per barrel (down 4.37%). Global stock markets rallied on the news, reflecting relief that the conflict — which had disrupted the Strait of Hormuz, a chokepoint through which approximately 20% of global oil passes — was coming to an end.
US Vice President JD Vance told Fox News that the deal would “drive down the cost of energy, not just now but for the long term,” addressing concerns over rising inflation, which had hit 4.2% in May 2026.
Nuclear Issues Deferred
The most contentious issues — uranium enrichment limits, facility dismantlement, and inspection mechanisms — have been deferred to a 60-day negotiation period after the MoU takes effect. This represents a significant compromise, as Trump administration officials had previously cited the destruction of Iran’s nuclear program as a key objective of the conflict.
Iran stated that final negotiations on nuclear issues will only begin after Washington fulfills its commitments, including the release of frozen assets, sanctions suspension, and blockade lifting.
International Reactions
United Nations Secretary-General António Guterres welcomed the agreement, while the UK, France, Germany, and Italy issued a joint statement expressing willingness to lift sanctions on Iran in exchange for nuclear steps, emphasizing that “Iran must never acquire a nuclear weapon.”
Qatar welcomed the agreement as “an important step towards consolidating sustainable peace and promoting economic growth,” while Turkey expressed hope that subsequent negotiations would be conducted constructively. Hezbollah congratulated Iran on the “great achievement” of imposing an end to aggression.
However, the deal faces significant opposition. Iranian hardliners protested outside the Foreign Ministry, chanting against Araghchi and Ghalibaf. Ayatollah Nabavian, Iran’s National Security Commissioner, criticized the agreement, stating that “according to the text of the agreement, we will become a colony of America.”
Israeli Opposition
Israel has expressed strong disapproval of the Islamabad Memorandum. According to the Wikipedia article on the Islamabad Memorandum, Israel attempted to derail the agreement by bombing Beirut twice, nearly derailing negotiations each time. Israeli defense officials have indicated that military operations in Lebanon will continue regardless of the MoU, and Prime Minister Netanyahu reportedly told Trump that Israel would not withdraw from seized land in southern Lebanon.
What’s Next
The US military has clarified that the naval blockade remains in effect until the formal signing on June 19, creating a brief window of continued tension. The coming days will be critical as the world watches whether all parties — particularly Israel — will comply with the terms, and whether the 60-day nuclear negotiations can succeed where previous diplomatic efforts have failed.
If fully implemented, the Islamabad Memorandum would represent one of the most significant diplomatic breakthroughs in modern Middle Eastern history, ending a war that disrupted global energy markets and threatened to spiral into a broader regional conflict.