The United States and Iran have signed a memorandum of understanding aimed at dialing down a conflict that has rattled global markets and redrawn geopolitical alliances over the past year. The formal ceremony took place on June 19, 2026, in Switzerland, capping months of negotiations brokered in part by Pakistan’s Prime Minister Shehbaz Sharif.
The agreement, known as the Islamabad Agreement, lays out immediate confidence-building measures and kicks off a 60-day negotiation period focused on Iran’s nuclear program and broader sanctions architecture.
What the deal actually includes
The MOU covers a handful of concrete, near-term actions. The Strait of Hormuz will be reopened to commercial traffic. The US naval blockade on Iranian ports will be lifted as part of the confidence-building framework.
On the economic side, the agreement outlines phased sanctions relief and the release of frozen Iranian assets.
