US and Iran Electronically Sign Landmark Peace Agreement
The United States and Iran have electronically signed a memorandum of understanding (MoU) to end the devastating 2026 Iran war, with a formal signing ceremony scheduled for June 19 in Geneva, Switzerland, senior US officials confirmed on Monday. The agreement, known as the Islamabad Memorandum, marks a potential turning point in a conflict that has reshaped the Middle East since late February.
According to Xinhua News, US President Donald Trump and Vice President JD Vance signed the document on the American side, while Iranian Parliament Speaker Mohammad Bagher Ghalibaf signed on behalf of Iran. Vance, along with Trump envoy Steve Witkoff and advisor Jared Kushner, is expected to attend the Geneva ceremony.
A Framework Agreement with Critical Gaps
Vice President Vance described the MoU as a “very general document” roughly a page and a half long, according to Al Jazeera. The framework agreement provides for an end to military strikes on all fronts, the reopening of the Strait of Hormuz to commercial shipping, the lifting of the US naval blockade on Iranian ports, and a 60-day extension of the ceasefire for follow-up negotiations.
However, major issues remain unresolved. The MoU contains no accord on Iran’s nuclear program, uranium stockpiles, sanctions relief, Iran’s ballistic missile program, or its network of armed proxies in the Middle East. These critical matters have been deferred to the 60-day negotiation period that will begin after the formal signing.
Conflicting Interpretations Emerge
Within hours of the electronic signing, Washington and Tehran offered sharply different descriptions of the deal’s terms. Iranian officials asserted that the US had agreed to release $25 billion of Iran’s frozen assets and waive oil sanctions. Vance flatly denied this, telling US media that “there hasn’t been a single dollar of sanctions relief or unfrozen assets” from Washington or its allies, as People’s Daily reported.
Trump claimed on Truth Social that the Strait of Hormuz would be “permanently toll-free,” but Iran indicated it still intends to charge “fees” — though not “tolls” — to ships traversing the strategic waterway. A senior US official said the strait would “likely” be cleared within 30 days, contingent on Iran committing to remove all mines.
The Road to Geneva
The agreement caps a tumultuous diplomatic journey that began with the US-Israeli strikes on Iran on February 28, which killed Iran’s then-Supreme Leader Ali Khamenei and triggered a regional conflict. The war claimed thousands of lives, disrupted global energy markets, and stranded approximately 22,000 seafarers in the Gulf for nearly four months.
Peace talks in Islamabad, Pakistan, on April 11-12 failed to produce a deal, leading Trump to impose a naval blockade on Iran. Momentum shifted in early June, with Qatari-mediated talks in Tehran narrowing key gaps. Pakistani Prime Minister Shehbaz Sharif announced on June 12 that the text had been agreed upon, and Trump confirmed the deal on Truth Social on June 14.
International Reactions
The agreement has drawn a mixed global response. UK Prime Minister Keir Starmer called it a “hugely important” step but stressed that commitments on Iran’s nuclear program must be “robust, verifiable and fully implemented.” UN Secretary-General Antonio Guterres praised the deal as a “critical step” toward peace.
China welcomed the agreement and expressed appreciation for Pakistan’s mediation. Saudi Arabia, the UAE, Turkey, and the European Union all voiced support, while calling for swift implementation and toll-free navigation through the Strait of Hormuz.
Israel, however, strongly opposed the agreement. Finance Minister Bezalel Smotrich called it “bad for Israel and for the entire free world.” Defense Minister Israel Katz said Israel would not withdraw from land it occupies in Lebanon, and a senior US official confirmed that the MoU does not require Israeli withdrawal, stating that Israel retains the right to self-defense if attacked by Hezbollah.
What Comes Next
The formal signing in Geneva on Friday will trigger a 60-day negotiation period during which the most contentious issues — nuclear enrichment, sanctions, ballistic missiles, and Iran’s regional proxies — must be addressed. Vance suggested that Iran could access a $300 billion reconstruction fund from Gulf Arab states if it complies with the agreement’s terms.
Meanwhile, the humanitarian situation remains urgent. Saman Rezaei, head of the Iranian Merchant Mariners Syndicate, told Al Jazeera that safety verifications for large ships could take 40 to 50 days, with high insurance costs and lingering distrust potentially delaying a full return to normal maritime operations for up to eight months.
Whether this framework agreement can hold and lead to a comprehensive peace will depend on the difficult negotiations ahead — and on whether the deal’s conflicting interpretations can be reconciled before the 60-day window closes.