LAST UPDATE | 14 hrs ago

THE DEAL TO end the war between the United States and Iran is taking “immediate effect” after both sides signed an agreement, although a formal signing ceremony is still due to take place on Friday.

Pakistan’s prime minister Shehbaz Sharif said leaders of both countries had signed the agreement and endorsed him as a mediator.

He said in a post on X that the deal “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”.

Sharif said that Pakistan and co-mediator Qatar will host an official signing ceremony on Friday in Switzerland. His post came shortly after US President Donald Trump said he had signed the agreement during a dinner at the Palace of Versailles.

The agreement, known as the Islamabad Memorandum of Understanding, outlines a 14-point framework for ending hostilities and negotiating a final peace deal within 60 days.

Key provisions include:

• An immediate and permanent cessation of military operations between the US, Iran and their allies, including in Lebanon.
• A commitment by both countries to respect each other’s sovereignty and refrain from interference in domestic affairs.
• Iran reaffirming that it will not develop or acquire nuclear weapons.
• Tehran’s stockpile of highly enriched uranium being diluted under the supervision of the International Atomic Energy Agency (IAEA), with broader nuclear issues to be addressed in future negotiations.
• The US beginning the removal of its naval blockade immediately and fully ending it within 30 days.
• Washington issuing waivers to allow exports of Iranian crude oil and petroleum products, while also releasing frozen Iranian funds.
• A commitment by the US and regional partners to develop a reconstruction and economic package for Iran worth at least $300 billion (€258 billion).
• The reopening of the Strait of Hormuz to commercial shipping free of charge for an initial 60-day period.
• Iran guaranteeing the safe passage of commercial vessels and removing military and technical obstacles affecting navigation.
• A commitment by the US not to impose new sanctions or deploy additional forces to the region while negotiations on a final agreement continue.

The memorandum also establishes a mechanism to monitor compliance and envisages any final settlement being endorsed by a binding United Nations Security Council resolution.

US officials dictated draft language to journalists after days of secrecy. Iranian state television later released text that largely matched the version provided by Washington.

Though officials had previously indicated that Trump and Vice President JD Vance digitally signed the agreement on Sunday and that a ceremonial signing would be held in Switzerland on Friday, Trump formally signed the deal while attending an event at Versailles on Wednesday.

🚨 President Donald J. Trump has SIGNED the Iran Memorandum of Understanding at Versailles in France. 🇺🇸 pic.twitter.com/JQ6qlbvFAF

— The White House (@WhiteHouse) June 17, 2026

A US official also said Iranian President Masoud Pezeshkian signed the agreement the same day, although Tehran did not immediately comment.

After signing the memorandum in Versailles, Trump posted on Truth Social that the trip “was a Great Success”.

“Mostly what people wanted to talk about, is the fact that Iran will not have a Nuclear Weapon, and that the Strait of Hormuz will immediately be opened!” Trump added.

“Recent Stock Market numbers are through the roof because of the settlement and, likewise, Oil Prices are tumbling down!”

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“It’s signed,” Trump said as he left Versailles, where he had dined with French President Emmanuel Macron following a trip to the G7 summit in France.

The memorandum was also reportedly hailed by the secretary-general of Hezbollah, Naim Qassem, as a “great victory”.

The full text of the memorandum has not been formally published, but both sides say it is intended as the first step towards a binding final agreement.

Under the deal, negotiations on unresolved issues will begin immediately, with any final settlement expected to be endorsed by a United Nations Security Council resolution.

Additional reporting from PA