US and Iran Sign Peace Deal Ending Regional War

The Government of the United States and the Government of Iran signed a memorandum of understanding (MoU), also known as the Islamabad Memorandum, to end a regional war that began on February 28, 2026. The conflict, characterized by U.S. and Israeli strikes including 'Operation Epic Fury', resulted in the death of Iranian Supreme Leader Ali Khamenei and thousands of casualties across Iran and Lebanon. The agreement, electronically endorsed by President Donald Trump and President Masoud Pezeshkian, establishes a 60-day window to negotiate a final settlement regarding sanctions relief and Iran's nuclear program.

Key terms include the reopening of the Strait of Hormuz, the lifting of U.S. naval blockades, and the release of frozen Iranian assets. The U.S. also proposed a $300 billion private investment fund for Iranian reconstruction. In exchange, Iran agreed to a framework for nuclear verification and the dilution of highly enriched uranium, though disputes remain over the timing and scope of IAEA inspections.

Regional stability remains fragile due to the role of Lebanon. While the MoU mandates a cessation of hostilities on all fronts, Israel is not a signatory and has refused to withdraw its forces from southern Lebanon. This has led to repeated ceasefire violations, including Israeli strikes on June 19 that killed dozens of Lebanese civilians and four Israeli soldiers. In response, Iran briefly re-closed the Strait of Hormuz and canceled a scheduled signing ceremony in Switzerland. To manage these tensions, the U.S., Iran, Qatar, and Pakistan established a 'deconfliction mechanism' to monitor the Lebanese border, a move rejected by Israeli leadership as 'Iranian extortion'.