Islamabad MOU Revealed as US-Iran Deal Sets Hormuz Reopening

ISLAMABAD: A senior United States official has read out the text of a 14-point interim understanding between Washington and Tehran, formally titled the Islamabad Memorandum of Understanding, placing Pakistan’s diplomatic role at the centre of a fast-moving peace effort aimed at ending the Iran conflict and reopening the Strait of Hormuz.

The document outlines an immediate halt to military operations, a commitment by both sides not to launch new attacks, and a framework for broader negotiations expected to begin in Switzerland on Friday. The agreement is being treated as an interim political breakthrough rather than a final settlement, because several difficult issues have been pushed into a 60-day negotiation window.

A key section of the understanding deals with maritime security. The United States is expected to begin removing its naval blockade after the memorandum is signed and complete the process within 30 days, while Iran is required to make arrangements for safe commercial passage through the Persian Gulf and the Sea of Oman during the same transition period.

The senior US official said the text also includes major economic commitments, including a proposed reconstruction and development plan worth at least $300 billion for Iran. The agreement further refers to future sanctions relief, access to frozen or restricted Iranian assets, and temporary waivers for oil exports, banking, insurance and transport services linked to Iranian crude and petroleum products.

The nuclear question remains one of the most sensitive parts of the draft. Iran reaffirms that it will not seek nuclear weapons, while both sides agree to work out a mechanism for handling stockpiled enriched material under international supervision. The final agreement is expected to define how enrichment and other nuclear issues are addressed.

For Pakistan, the naming of the document as the Islamabad Memorandum of Understanding carries major symbolic and diplomatic significance. Islamabad has presented itself as a facilitator of de-escalation, and the latest disclosure strengthens the perception that Pakistan helped create space for a negotiated route out of a crisis that had threatened energy routes and regional stability.

The Strait of Hormuz is central to the story because it is one of the world’s most important energy corridors. Any prolonged disruption there can push up oil prices, disturb shipping schedules and increase pressure on import-dependent economies, including Pakistan, where fuel costs directly affect transport, electricity, food prices and inflation expectations.

The agreement also proposes the creation of an executive mechanism to monitor implementation and says the final deal would be endorsed through a binding United Nations Security Council resolution. That provision suggests both sides want international backing for the eventual settlement, but it also means diplomacy will remain complex and vulnerable to delays.

The development comes after weeks of tension in the Middle East and growing concern that the conflict could spread beyond Iran. Pakistan, Qatar and other regional actors have been credited in international statements for supporting the talks, but the durability of the peace process will depend on whether Washington and Tehran can maintain restraint while negotiating the final deal.

The next major test will be the expected signing and the opening phase of talks in Switzerland. If the interim deal holds, Pakistan could gain diplomatic credibility and economic relief from calmer oil markets; if the process collapses, the region may return to uncertainty with serious consequences for energy security, trade routes and regional peace.