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Business News Today: Latest Business News, Finance News

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Peace deal is signed by Iran and US: Pak PM Shehbaz
PTI · 2026-06-18 · via Business News Today: Latest Business News, Finance News

Pakistan on Thursday announced that the US and Iran have affixed electronic signatures on the peace deal, paving the way for the reopening of the Strait of Hormuz.

Prime Minister Shehbaz Sharif said that the signing of the agreement at the highest level of the respective governments demonstrates the commitment of both sides to a diplomatic resolution of the conflict.

"I am honoured to announce that the historic 'Islamabad Memorandum of Understanding' has been electronically signed today between the United States of America and the Islamic Republic of Iran," Sharif said in a post on X.

The electronic signing has paved the way for the formal ceremony being held in Geneva on Friday, which Pakistan will co-host alongside Qatar.

President Donald Trump signed an agreement with Iran on Wednesday.

The Memorandum signed by the honourable presidents of both countries was endorsed by Sharif himself as a mediator, Shehbaz said.

I am honoured to announce that the historic 'Islamabad Memorandum of Understanding' has been electronically signed today between the United States of America and the Islamic Republic of Iran. The Memorandum has been signed by honourable Presidents of both the countries and also…

— Shehbaz Sharif (@CMShehbaz) June 18, 2026

"Islamabad MoU shall enter into force with immediate effect and as a first step, the Islamic Republic of Iran will instantly reopen the Strait of Hormuz and the United States of America will immediately lift the naval blockade,” he said in the social media post.

The Strait of Hormuz is a 55-kilometre-wide strait between Iran and Oman, separating the Persian Gulf from the Arabian Sea.

It is a particularly important piece of global real estate in terms of the energy sector and one of the busiest and most strategically significant shipping routes in the world.

Shehbaz also offered “heartfelt congratulations and sincere appreciation” to the US President Donald Trump, whose steadfast commitment to diplomacy and preference for peaceful resolution have once again helped end a conflict that could have led to devastating consequences for the region and beyond.

He also commended the dedication and tireless efforts of the US negotiating team, including Vice President JD Vance, Steve Witkoff and Jared Kushner, for their contributions to this achievement.

He expressed “profound respect and appreciation” for Iran's Supreme Leader Ayatollah Seyyed Mojtaba Hosseini Khamenei and President Masoud Pezeshkian for their “wisdom, foresight and statesmanship in embracing the cause of peace”.

In his post, he also recognised the efforts of the Iranian negotiating team, including Mohammad Bagher Ghalibaf, Abbas Araghchi and Eskandar Momeni, whose “patience, perseverance and commitment to constructive engagement were instrumental in bringing this agreement to fruition”.

He especially acknowledged the sincere efforts and constructive engagement of the leadership of Qatar in helping reach this point, as he also commended the leadership of Saudi Arabia, Turkiye and Egypt for their “indispensable role and invaluable contributions in this regard”.

The deal was negotiated through mediators that included Pakistan and Qatar, who initially got a two-week ceasefire agreement on April 8. The ceasefire was extended till the completion of the talks.

The US and Israel launched attacks on Iran on February 28, killing Supreme Leader Ayatollah Ali Khamenei and several top commanders.

Khamenei's son Mojtaba, who was elected as the new supreme leader, has not been seen in public since the war began.

Sharif also praised Pakistani army chief Field Marshal Asim Munir for his efforts for peace.

"May this Memorandum of Understanding serve as an enduring foundation for greater understanding, mutual respect and shared prosperity for the complete region," Shehbaz said as concluding remarks in the post.

On Wednesday, Pakistan and Turkiye welcomed the understanding reached between the United States and Iran to end their 107-day conflict.

Earlier on Sunday, President Trump announced that the US and Iran have finalised a deal to end the ongoing conflict, which triggered a global energy crisis.

During the conflict, Iran effectively closed the Strait of Hormuz, the narrow waterway used to ferry one-fifth of the global oil supplies.

Published on June 18, 2026