Pakistan’s Prime Minister Shehbaz Sharif announced on Thursday that the United States and Iran have electronically signed the “Islamabad Memorandum of Understanding,” a framework to end their brief but destabilising military confrontation. The accord, endorsed by Sharif in his capacity as lead mediator, took effect immediately. As a first step, Iran will reopen the Strait of Hormuz without delay, while the United States will lift its naval blockade of Iranian ports. The reciprocal measures address the two most economically disruptive elements of the conflict, which had sent oil prices soaring and threatened global shipping lanes.

The memorandum was signed by US President Donald Trump and Iranian President Masoud Pezeshkian, and Sharif publicly thanked both leaders, as well as US Vice President JD Vance, Jared Kushner, and envoy Steve Witkoff. Notably, he also expressed gratitude to Iran’s new Supreme Leader, Mojtaba Khamenei, who assumed the role after his father, Ali Khamenei, was killed in the opening minutes of a joint US-Israeli operation on 28 February. Since that strike, the younger Khamenei has made no public appearance, and no video or audio recordings have been released, a silence that has fuelled speculation about the internal dynamics of the Islamic Republic’s leadership.

The diplomatic breakthrough was mediated by Pakistan, with Qatar acting as a joint mediator. Sharif confirmed that both countries will host a formal ceremony in Switzerland on Friday, 19 June 2026, to mark the occasion and launch technical-level talks. The choice of Switzerland as a neutral venue underscores the delicate choreography required to bring the parties together after weeks of open hostilities. Viewed from Islamabad, the agreement represents a significant diplomatic victory, reinforcing Pakistan’s self-styled role as a bridge between adversaries. In Doha, officials have emphasised the collaborative nature of the mediation, while European diplomats have cautiously welcomed the de-escalation.

For Washington, the immediate priority is restoring freedom of navigation in the Persian Gulf and stabilising energy markets. Analysts in London note that the electronic signing—conducted without a face-to-face meeting—reflects both the urgency of the moment and the deep mistrust that persists. The lifting of the naval blockade and the reopening of Hormuz will be closely watched by insurers and shipping companies, who had begun rerouting vessels at enormous cost. In Tehran, the agreement signals a pragmatic turn under the untested leadership of Mojtaba Khamenei, though hardliners may view any concession as a betrayal of the martyred Ali Khamenei. The coming technical negotiations in Switzerland will test whether the memorandum can evolve into a durable settlement, or whether it merely freezes a conflict that remains unresolved beneath the surface.