The United States and Iran have signed a formal Memorandum of Understanding to end hostilities, marking a shift in bilateral relations. According to reports from AFP and Iranian state news agency IRNA, the agreement was finalized following high-level diplomatic discussions, with both nations committing to an initial two-month negotiation period to implement de-escalation measures, starting with the reopening of the Strait of Hormuz.
How will the peace agreement be implemented?
Implementation will occur in phases, beginning with the reopening of the Strait of Hormuz, a critical global shipping artery. According to Iranian Foreign Ministry spokesperson Esmaeil Baqaei, the text of the “Islamabad Memorandum of Understanding” was finalized through electronic, remote signatures by both presidents. While Swiss officials previously planned an in-person ceremony in Lucerne involving Iranian Parliamentary Speaker Bagher Ghalibaf and U.S. Vice President JD Vance, Iranian officials stated that formal ceremonies were not prioritized in their planning.
What are the financial and political stakes for both nations?
The agreement carries significant weight due to the formal nature of the signatures. “When the text is signed by the highest officials of both countries, violating it will certainly incur higher costs,” Baqaei told IRNA. By formalizing the memorandum, both the U.S. and Iran aim to shift from open conflict to a structured, monitored negotiation framework. This move contrasts with previous informal de-escalation attempts, which often lacked the high-level executive signatures now confirmed by both the White House and Tehran.
Comparing the diplomatic approaches
There is a distinct difference in how the two nations are framing the rollout of this agreement. The U.S. side, represented by President Trump, finalized the memorandum during a dinner with French President Emmanuel Macron at the Palace of Versailles following the G7 summit. Conversely, Iranian officials, such as Baqaei, have emphasized the functional, electronic nature of the signing, downplaying the need for traditional diplomatic pageantry in favor of immediate implementation.
Frequently Asked Questions
Who signed the peace agreement?
The agreement was signed by the presidents of the United States and Iran. U.S. President Donald Trump confirmed the signing on June 17, 2026, while Iranian officials confirmed the electronic signing of the “Islamabad Memorandum of Understanding” the same day.
What is the first step of the treaty?
The primary, immediate step is the reopening of the Strait of Hormuz to international shipping, according to the terms released by both governments.
Is there a transition period?
Yes. Both nations have agreed to a two-month negotiation period immediately following the signing to oversee the implementation of the agreement’s terms.
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