WASHINGTON: US President Donald Trump and Iran’s president signed a deal Wednesday meant to end the Middle East war, with Tehran agreeing to dilute its enriched uranium in return for large-scale economic relief.
Trump put his signature to the memorandum of understanding during a candlelit dinner at the Palace of Versailles following a G7 summit, as host French President Emmanuel Macron and other guests applauded, a video posted by a Trump aide showed.
“Just signed it,” Trump told reporters as he emerged from the palace.
🚨 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
Iranian Foreign Ministry spokesman Esmaeil Baqaei, quoted by the state news agency IRNA, said the document “was finalised with the signatures of the presidents.”
Prime Minister Shehbaz Sharif of Pakistan, who mediated the agreement, said on X that it “shall enter into force with immediate effect.”
I am honoured to announce that the historic ‘Islamabad Memorandum of Understanding’ has been electronically signed today between the United States of America and the Islamic Republic of Iran. The Memorandum has been signed by honourable Presidents of both the countries and also…
— Shehbaz Sharif (@CMShehbaz) June 18, 2026
The deal aims to draw a line under the war launched February 28 by the United States and Israel, prompting Iran to counterattack with missile and drone salvos across the region — and effectively shutting down the Strait of Hormuz, a crucial waterway for the world economy. The US responded by blocking shipping to and from Iranian ports.
“As a first step, Islamic Republic of Iran will instantly reopen the Strait of Hormuz and the United States of America will immediately lift the naval blockade,” Sharif wrote.
Iran’s President Pezeshkian SIGNS MoU between Washington & Tehran — Trump signature CLEARLY VISIBLE on paper pic.twitter.com/SXUQbRWgJP
— RT (@RT_com) June 18, 2026
Under the text, Washington also commits to immediately waive oil sanctions crippling Iran’s economy.
And once a final agreement is reached on the Islamic Republic’s nuclear program, the United States will also facilitate the release of a $300 billion reconstruction fund supported by regional nations, the deal says.
The agreement had earlier been slated for signatures by Iran’s chief negotiator and parliament speaker, Mohammad Bagher Ghalibaf, and US Vice President JD Vance.
Prime Minister Sharif said an official ceremony will take place on Friday in Switzerland and technical talks will commence.
PM Shehbaz Sharif signs historic Islamabad MoU as US–Iran mediator
Meanwhile, Prime Minister Shehbaz Sharif signed the Islamabad Memorandum of Understanding (MoU) in his capacity as mediator, formally sealing a historic peace agreement between Iran and the United States.
According to a statement issued by the Prime Minister’s Office, the premier signed the MoU as mediator, while US President Donald Trump and Iranian President Masoud Pezeshkian signed the document on behalf of their respective countries.
Islamabad :18 June 2026.
Prime Minister of Pakistan Muhammad Shehbaz Sharif signed the Islamabad Memorandum of Understanding (Islamabad MoU)، as mediator.
The Islamabad MOU has been signed by President of USA Donald J. Trump and Iranian President Masoud Pezeshkian. pic.twitter.com/M0LKK9XoK8
— Prime Minister’s Office (@PakPMO) June 18, 2026
Negotiations to begin
A two-month negotiating period now begins, with the much-anticipated reopening of the Strait of Hormuz as the first step.
Under the terms of the deal released by US officials, Iran will dilute its enriched uranium stocks, possibly by “down-blending on site under the supervision of the IAEA” — the UN’s nuclear watchdog.
This would lead to more far-reaching economic assistance for Iran.
But a US official said Washington would not be required to contribute financially.
