US and Iran sign 14-point Islamabad MoU: Ceasefire terms, sanctions relief, and global reactions

The United States and Iran signed a 14-point memorandum of understanding on June 17, 2026, bringing an end to months of active conflict that began in February 2026 . The deal, brokered by Pakistan, establishes an immediate ceasefire across all fronts including Lebanon and sets a 60-day timeline for negotiating a permanent peace agreement.

Key terms of the Islamabad Memorandum of Understanding

The Islamabad Memorandum of Understanding (Islamabad MoU) commits both sides to an immediate and permanent cessation of military activities on all fronts, including Lebanon . Pakistani Prime Minister Shehbaz Sharif mediated months of indirect talks between Washington and Tehran. President Donald Trump signed the document in person at a dinner hosted by French President Emmanuel Macron at the Palace of Versailles, shortly after the G7 summit in Évian. Iranian President Masoud Pezeshkian signed remotely in Tehran .

U.S. commitments

• Lift the naval blockade of Iranian ports within 30 days
• Remove sanctions on an agreed schedule
• Reopen the Strait of Hormuz "instantly"
• Develop a $300 billion reconstruction plan for Iran

Iranian commitments

• Pledge not to develop nuclear weapons
• Down-blend enriched material under IAEA supervision
• Cease all military operations

The agreement extends a ceasefire first announced in April by an additional 60 days to allow both sides to negotiate a final truce . Trump emphasized the deal is not a final peace treaty, calling it a preliminary step to be followed by full talks .

The text of the MoU was formally released by the U.S. side on Wednesday evening and immediately entered into force .

Global and domestic reactions

U.S. congressional response

Democratic lawmakers demanded immediate briefings from the White House on the terms of the MoU . A bipartisan consensus emerged in Congress that any final nuclear agreement must receive a congressional vote, signaling opposition to an executive-only deal .

G7 reaction

G7 leaders welcomed the preliminary agreement but called for an immediate ceasefire in Lebanon specifically. They also stressed the need to diversify global energy supply routes, reflecting concerns over Hormuz reliability .

Trump's warning

The president said the U.S. could resume bombing Iran if Iran's leaders "don't behave" or fail to honor commitments .

Iran's internal narrative

Tehran declared victory, arguing the MoU reflects major U.S. concessions including sanctions removal and blockade lifting . Iranian President Pezeshkian called the agreement a "historical document and a message from a powerful Iran" .

Israel's position

Israel was not a direct signatory but was closely consulted; the ceasefire applies to Lebanon and all fronts involving Iran-aligned forces . The MoU does not explicitly reference Israel, which had conducted frequent strikes in Lebanon since early March .

What the MoU means for Lebanon and the region

The first section of the MoU asserts that both countries have consented to the "immediate and permanent cessation of military activities on all fronts, including Lebanon." Both nations commit to safeguarding the "territorial integrity and sovereignty of Lebanon" . The agreement does not detail the role of Iran-aligned forces in Lebanon but marks a significant step toward de-escalation after months of conflict that saw Israeli strikes and Iranian-backed operations across the region.

Next steps: 60-day negotiation window

The 60-day negotiation window opens the door to broader talks aimed at a comprehensive peace deal. Key issues include the final status of sanctions, the scope of the reconstruction plan, and verification mechanisms for Iran's nuclear commitments. The U.S. has signaled it will maintain the threat of resumed military action as leverage, while Iran portrays the deal as a validation of its strategic position.