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US, Iran Officially Sign Landmark Peace Memorandum, Extend Ceasefire, Reopen Strait Of Hormuz

Paul Joseph by Paul Joseph
June 18, 2026
in News
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US, Iran Officially Sign Landmark Peace Memorandum, Extend Ceasefire, Reopen Strait Of Hormuz
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The United States and Iran have formally signed a landmark Memorandum of Understanding (MoU) aimed at extending their ceasefire, reopening the vital Strait of Hormuz, and laying the groundwork for a broader agreement intended to prevent Iran from acquiring nuclear weapons.

Key Highlights:

  • United States and Iran signed an MoU to extend a ceasefire and restart talks.
  • The deal was reportedly signed by Donald Trump and Masoud Pezeshkian.
  • It aims to reopen the Strait of Hormuz and ease regional tensions.
  • Iran’s foreign ministry spokesperson Esmaeil Baghaei confirmed the agreement’s activation.
  • The deal also outlines sanctions relief and future negotiations on Iran’s nuclear programme.

The breakthrough agreement, signed electronically on Wednesday US time by President Donald Trump and Iranian President Masoud Pezeshkian, marks the most significant diplomatic development between the two countries since hostilities erupted earlier this year.

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Iran’s Foreign Ministry spokesperson, Esmaeil Baghaei, confirmed that the agreement had been finalized and had officially entered into force.

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“The text of the Islamabad Memorandum of Understanding was finalised with the signatures of the presidents. Now it is time to test the implementation of the agreement,” Baghaei said.

President Trump, speaking after signing the document at the Palace of Versailles near Paris, described the agreement as a major diplomatic achievement.

“It’s signed. I signed it in Versailles. Just signed it,” Trump told reporters, while the White House later confirmed the signing.

The memorandum extends the existing ceasefire by 60 days following months of conflict involving the United States, Israel and Iran. During the period, Iran is expected to gradually reopen the Strait of Hormuz, one of the world’s most critical oil shipping routes, while Washington will lift its naval blockade of Iranian ports.

The agreement also creates a framework for intensive negotiations over Tehran’s nuclear programme. In return, the United States has agreed to begin easing selected sanctions and facilitate waivers for Iranian oil exports, offering significant economic relief to the sanctions-hit country.

Although an official signing ceremony had been planned in Geneva, Switzerland, Iranian officials said it was no longer necessary because both leaders had already signed the agreement electronically. Diplomatic teams are still expected to meet in Geneva for further discussions.

Video footage released after the signing showed Trump pausing before signing the first page of the agreement, telling those present: “This was not easy.”

Despite the breakthrough, Tehran signalled it would closely scrutinise Washington’s implementation of the agreement.

Baghaei warned that Iran would monitor US compliance “without any leniency” and would suspend its own commitments should Washington fail to honour its obligations.

He stressed that negotiations over the next 60 days would focus on Iran’s nuclear programme and sanctions relief, while insisting that Iran’s missile programme remained non-negotiable.

“Iran’s missiles are only for firing, not for negotiation. Iran’s defence capabilities will not be discussed in any process with any party,” he said.

Baghaei also rejected suggestions that Iran would export its stockpile of highly enriched uranium, saying dilution of the material remained only one possible option under discussion.

On regional security, he maintained that Iran would continue supporting its allies, including Lebanon, while placing responsibility on the United States to ensure Israel honours commitments contained in the memorandum.

Regarding the Strait of Hormuz, Iran said it intends to establish a new management framework for the strategic waterway alongside Oman and introduce service fees for vessels using the route.

The agreement has sparked mixed political reactions in Washington. While the Trump administration has promoted it as a historic diplomatic success capable of preventing Iran from developing nuclear weapons, several conservative lawmakers have criticised what they view as generous concessions to Tehran.

Some Republicans argue that the proposed easing of sanctions and the creation of a $300 billion reconstruction fund for Iran reward Tehran before a comprehensive nuclear settlement has been secured.

Iranian officials, however, have hailed the memorandum as evidence that Washington failed to achieve its objectives during the conflict.

Chief negotiator Mohammad Bagher Ghalibaf described the agreement as “a record of US failure,” insisting history would judge the outcome in Tehran’s favour.

Although the memorandum has reduced immediate fears of renewed fighting and helped stabilise global energy markets, both governments acknowledge it represents only an interim framework.

The next 60 days of negotiations are expected to determine whether the temporary understanding evolves into a comprehensive and lasting peace agreement capable of reshaping security and stability across the Middle East.

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