US-Iran Peace Deal Reaches Final Text as Pakistan Confirms MOU — Signing Could Come This Weekend
The United States and Iran have reached the final agreed text of a Memorandum of Understanding to end months of active war, Pakistani Prime Minister Shehbaz Sharif confirmed on June 12, 2026 — a development President Trump described as a breakthrough that could produce a formal signing ceremony "maybe over the weekend in Europe."
According to NBC News, the prospective agreement — referred to as the Islamabad Agreement — would be signed by Vice President JD Vance, with four US Air Force C-17 aircraft already departing Thursday to move equipment to Europe in preparation for a potential ceremony in Geneva.
Sharif, writing on X after what he described as "intense mediation efforts," tagged Trump, Vance, Secretary of State Marco Rubio, US envoy Steve Witkoff, Iranian President Masoud Pezeshkian, and Foreign Minister Abbas Araghchi in a post stating that "peace has never been this close as it is now."
What the MOU Actually Contains
The core of the deal, as described to Axios by a diplomat from one of the mediating countries, is a 60-day ceasefire extension during which formal nuclear negotiations would be held.
Under the terms outlined, the Strait of Hormuz would reopen immediately upon signing — without tolls — and Iran would receive performance-based sanctions relief only upon demonstrating compliance with commitments. A senior US official told NBC News that "no funds are being released for simply signing a deal or attending a meeting."
According to PBS NewsHour, Iran currently holds 440.9 kilograms (972 pounds) of uranium enriched to up to 60% purity — a short technical step from the 90% weapons-grade threshold — per the International Atomic Energy Agency. The disposition of that stockpile is identified as the first issue to be negotiated during the 60-day ceasefire window.
Vice President Vance addressed Republican concerns about the deal's contents on X, writing that "fake information" had been shared and stressing: "The Iranians are not receiving any cash, and no funds are being released for simply signing a deal or attending a meeting."
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How the Deal Was Reached — and What Remained Disputed
The tentative agreement was reached on Wednesday night, June 11, after hours of negotiations in Tehran between Qatari mediator Ali Al-Thawadi and Iranian Foreign Minister Abbas Araghchi, with Al-Thawadi speaking by phone multiple times during those talks with US envoys Witkoff and Kushner, according to Axios.
A public dispute over the deal's terms erupted hours before Pakistan's announcement, when Iranian state media published what it described as the MOU contents — including Iran's commitment not to develop nuclear weapons. Trump responded by posting that the leaked details "have NOTHING to do" with the terms he says were already agreed, accusing Tehran of negotiating in bad faith.
According to RFE/RL, Iran's Foreign Affairs Ministry spokesman Esmail Baghaei said separately that Iran was in "the final stages of internal deliberations" on the MOU and could not confirm where or when a signing would occur.
The announcement also came as a surprise to Israeli Prime Minister Benjamin Netanyahu, who had reportedly been calling allies close to the Trump administration in recent days to gather information after finding himself without direct visibility into the negotiations, according to a US source cited by Axios.
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The Military Backdrop Still Running on June 12
Even as negotiators finalised text, the military situation remained active.
ABC News reported that the US military shot down two Iranian attack drones near the Strait of Hormuz in the early hours of June 12 after Iranian forces fired on a transiting vessel, according to a senior US official.
The US naval blockade on Iran — imposed on April 13, 2026, following the collapse of the Islamabad Talks — remains in effect. CENTCOM has intercepted 85 vessels and seized three ships since the blockade began, while Iran has seized two cargo ships in retaliation. The US Department of Defense estimated Iran had lost $4.8 billion in oil revenue by May 1, according to earlier Pentagon figures.
Wall Street responded to Trump's breakthrough announcement Friday morning: oil prices fell more than 3%, while S&P 500 futures were 0.6% higher before the opening bell, Dow futures added 0.7%, and Nasdaq futures rose 0.5%, according to CBS News.
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The Negotiating Timeline That Led Here
The current talks are the product of a multi-stage diplomatic process spanning more than a year. US Special Envoy Steve Witkoff, Jared Kushner, and CENTCOM commander Brad Cooper led the American negotiating delegation across multiple rounds, facing Iranian Foreign Minister Abbas Araghchi and Deputy Foreign Minister Majid Takht-Ravanchi across the table.
Talks began in Muscat, Oman in April 2025, resumed in Geneva in February 2026, continued in Islamabad in April 2026, and have since been driven primarily by Qatari and Pakistani back-channel mediation.
The war itself began on February 28, 2026, when Trump announced "major combat operations" against Iran with joint US-Israeli strikes. The current ceasefire has been in place since mid-April, extended by Trump pending a negotiated outcome "one way or the other."
Whether this weekend's potential signing represents a durable path to peace — or a 60-day pause before a harder reckoning over Iran's nuclear programme — remains the central question hanging over what would be the highest-level formal agreement between Washington and Tehran since the 1979 Islamic Revolution.
Key Takeaways
- Pakistani PM Shehbaz Sharif confirmed on June 12 that the final, agreed text of the US-Iran MOU has been reached.
- The MOU would extend the ceasefire for 60 days and open nuclear negotiations — with the Strait of Hormuz reopening immediately upon signing.
- A signing ceremony is expected "over the weekend in Europe" — likely Geneva — with VP Vance attending.
- Iran holds 440.9 kg of uranium enriched to 60% — the disposition of that stockpile is the first item on the negotiating agenda.
- Markets reacted Friday: oil fell more than 3%, S&P 500 futures rose 0.6%.
Sources
- NBC News — Live Updates: US-Iran Drones, Trump Deal, War, Hormuz
- Axios — What's in the Iran Deal Trump Says He's Ready to Sign
- ABC News — Iran Live Updates: US Shoots Down 2 Iranian Drones
- RFE/RL — Pakistani PM Says Final Text of US-Iran Peace Deal Has Been Reached
- PBS NewsHour — US and Iranian Negotiators Reach Tentative Deal to Extend Ceasefire
- CBS News — Live Updates: Pakistan Says US-Iran Deal Text Has Been Reached
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