WASHINGTON (dpa-AFX) - The United States and Iran have signed a preliminary agreement to end the Middle East war.
Pakistan Prime Minister Shehbaz Sharif announced in a post on X Thursday that U.S. President Donald Trump and his Iranian counterpart Masoud Pezeshkian electronically signed the 'Islamabad Memorandum of Understanding,' and was endorsed by him as the mediator.
The MoU will enter into force with immediate effect and as a first step, Iran will instantly reopen the Strait of Hormuz and the United States will immediately lift the naval blockade of Iranian ports.
As per the 14-point framework deal, the U.S., Iranian teams will begin talks to reach a final deal over the next 60 days.
The MoU includes a $300 billion plan for the 'reconstruction and economic development' of Iran, which is estimated to have incurred a loss of approximately $270 billion in the more than three months long war. Independent analyses and independent institutes say the estimated economic impact is between $144 billion and $299 billion, as a result of massive damage to infrastructure and a heavy reduction in GDP.
The United States promises to release Iran's billions worth of frozen assets, and lift sanctions.
Another major source of income that the deal assures is immediate waivers on exporting Iran's crude oil and other petroleum products.
The MOU declares the immediate and permanent termination of military operations on all fronts, including in Lebanon.
Iran will make arrangements for the safe passage of commercial vessels between the Persian Gulf and the Sea of Oman with no fees, for 60 days.
The Islamic nation 'reaffirms' that it will not acquire a nuclear weapon, but the MoU does not mention about dismantling its nuclear program.
Meanwhile, in apparent response to some U.S. Congressmen criticizing him for not being tough in the deal, Trump wrote on Truth Social, 'These fools, who think I haven't been tough enough on Iran, when the Stock Market Just Hit A RECORD HIGH, and Oil prices are 'tumbling' down, are either jealous, bad people, or stupid.'
Oil markets reacted positively to the US-Iran interim peace agreement. Brent crude oil dropped below $78 per barrel on Thursday, while the US-traded WTI fell below $75 per barrel, the lowest level since the war broke out on February 28.
Copyright(c) 2026 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2026 AFX News
