The United States and Iran have signed a memorandum of understanding to end hostilities and reopen the Strait of Hormuz [1].

This agreement marks a significant diplomatic shift in the Middle East, potentially stabilizing global energy markets and halting a volatile proxy war between two long-term adversaries.

President Donald Trump announced the completion of the deal on June 14, 2026 [1]. "The Deal with the Islamic Republic of Iran is now complete," Trump said [1]. A senior U.S. official said the memorandum was signed remotely by Trump and Iran's top negotiator [2].

While some reports suggest the deal's terms remain secret, other sources indicate the agreement includes a two-week cease-fire [3, 4]. The reopening of the Strait of Hormuz is also expected as a primary component of the deal [4].

Iranian Ambassador Reza Amiri thanked the Pakistani government and its people for their support during the diplomatic process [5]. Some reports link Pakistani Prime Minister Shehbaz Sharif to the facilitation of the agreement [6].

The deal follows a period of intense tension and proxy conflicts. The use of a memorandum of understanding allows both nations to establish a framework for peace without the immediate requirement of a formal treaty, a move that provides political cover for both administrations.

“"The Deal with the Islamic Republic of Iran is now complete,"”

The agreement signals a strategic pivot toward de-escalation in the Persian Gulf. By focusing on the Strait of Hormuz and a short-term cease-fire, the U.S. and Iran are prioritizing economic stability and the prevention of direct military conflict over a comprehensive resolution of their systemic grievances. Pakistan's role as a mediator suggests a growing regional effort to stabilize the area independently of traditional Western-led frameworks.