Iran and the United States have reached a historic preliminary agreement to permanently halt all military operations against each other and their allies, based on a Memorandum of Understanding (MoU) brokered by Pakistan. This significant framework, known as the “Islamabad Memorandum of Understanding,” precedes a formal signing event scheduled in Geneva on Friday.
The Pakistan-facilitated pact, designed to resolve months of conflict between Washington and Tehran, officially took effect on Wednesday after US President Donald Trump and Iranian President Masoud Pezeshkian signed the document. Prime Minister Shehbaz Sharif also electronically endorsed the MoU on Thursday, acting as the mediator in the process.
The agreement commits both nations to a strict regime of non-aggression, sanctions relief, nuclear oversight, and a comprehensive $300 billion reconstruction initiative aimed at reversing years of isolation for Iran. It establishes a 60-day period for negotiating a binding peace treaty, which will require ratification by a United Nations Security Council resolution.
Under the MoU, all military activities by the US, Iran, and their allies must cease immediately and permanently, including ongoing operations in Lebanon. Both parties are legally obligated to refrain from future warfare, military campaigns, threats, or use of force against each other. The accord also guarantees Lebanon’s sovereignty and territorial integrity, while mandating mutual respect for each nation’s internal sovereignty and non-interference in domestic affairs.
In a key maritime provision, the US will begin dismantling its naval blockade on Iran immediately, committing to full removal within 30 days. Commercial maritime traffic will be gradually restored during this timeframe. Iran, in turn, will ensure the safe and unrestricted passage of commercial vessels navigating the Strait of Hormuz and the Sea of Oman, waiving all tolls and transit fees in these waters for 60 days to facilitate global trade.
Iran is required to clear all military and technical obstacles, including naval mines, from critical shipping lanes within 30 days. Concurrently, the US will withdraw armed forces from areas adjacent to Iran within 30 days following the final treaty’s execution. Additionally, Iran will commence formal bilateral discussions with Oman to determine the future administrative and security arrangements for the Strait of Hormuz.
Regarding sanctions relief, the US will immediately issue executive waivers on sanctions affecting Iranian crude oil, petroleum products, and international financial transactions. Frozen Iranian sovereign assets will be progressively unfrozen and restored to the Bank of Iran’s control. A phased lifting of all unilateral and multilateral sanctions imposed by the UN, EU, and US will proceed the timelines set in the final treaty. Furthermore, the US and regional partners will initiate a $300 billion joint investment project focused on Iran’s reconstruction and economic development, with regulatory permits and operational licenses to be granted within 60 days.
On nuclear issues, Iran has explicitly confirmed it will neither develop nor acquire nuclear weapons. Both countries have agreed on a regulated framework to safely dispose of or transfer Iran’s enriched fissile material stockpiles under strict International Atomic Energy Agency (IAEA) supervision. Until the final treaty is signed, Iran will maintain its current nuclear program status, while the US is prohibited from imposing new economic sanctions or deploying additional military forces to the Middle East.
A joint administrative mechanism with representatives from both sides will be established to monitor compliance and oversee the implementation of the MoU’s transitional provisions, ensuring the agreement’s smooth execution.
