US-Iran Sign Peace Deal: Donald Trump, Masoud Pezeshkian Agree To End Hostilities, Reopen Strait of Hormuz (Watch Video)
The United States and Iran have taken a major diplomatic step by signing the Islamabad Memorandum of Understanding (MoU), a landmark agreement aimed at ending military hostilities, reopening the Strait of Hormuz and paving the way for broader negotiations on sanctions relief and Tehran’s nuclear programme.
The United States and Iran have taken a major diplomatic step by signing the Islamabad Memorandum of Understanding (MoU), a landmark agreement aimed at ending military hostilities, reopening the Strait of Hormuz and paving the way for broader negotiations on sanctions relief and Tehran’s nuclear programme.
US President Donald Trump and Iranian President Masoud Pezeshkian signed the agreement digitally, bringing the memorandum into immediate effect. The deal comes after months of heightened tensions involving Iran, Israel and the United States and is being viewed as one of the most significant diplomatic breakthroughs between Washington and Tehran in recent years. After US-Iran Peace Deal, Donald Trump Turns Focus to Russia-Ukraine War, Says Vladimir Putin and Zelenskyy May Be Ready to Negotiate.
US-Iran Sign Peace Deal
The moment President Trump signs the Iran deal at the Palace of Versailles.
The agreement was finalized during a dinner hosted by French President Emmanuel Macron inside the historic palace.
The signing marked a major diplomatic milestone after months of negotiations aimed at… pic.twitter.com/slt91WwA2O
— Fox News (@FoxNews) June 18, 2026
A key focus of the agreement is the reopening of the Strait of Hormuz, a strategic maritime route that handles a substantial share of global oil shipments. Under the arrangement, Iran will facilitate the safe passage of commercial vessels while the United States will begin easing restrictions linked to its naval blockade. The move is expected to reduce uncertainty in global energy markets and restore confidence in Gulf shipping routes.
The memorandum also establishes a framework for future negotiations, with both sides committing to work towards a final agreement within 60 days. Discussions will cover sanctions relief, economic cooperation, regional security and Iran’s nuclear activities. Tehran has reaffirmed that it will not develop nuclear weapons, while issues related to enriched uranium stockpiles will be addressed under international supervision. ‘Ships Are Starting to Move’: Donald Trump Says Oil Tankers Resume Passage Through Strait of Hormuz After US-Iran Peace Deal.
Another significant aspect of the agreement is a proposed US-backed economic development and reconstruction programme for Iran, reportedly worth at least USD 300 billion. The deal also outlines a phased approach to lifting sanctions, including waivers for Iranian oil exports and the gradual release of frozen assets.
Analysts say the agreement could help ease regional tensions, revive economic engagement and create a pathway for long-term stability in the Middle East. If successfully implemented, the memorandum may reshape US-Iran relations and have far-reaching implications for global energy security and international diplomacy.
(The above story first appeared on LatestLY on Jun 18, 2026 07:16 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
