Trump and Pezeshkian Sign Historic U.S.-Iran Agreement as Ceasefire Takes Effect

The U.S.-Iran agreement officially entered into force after the signatures of U.S. President Donald Trump and Iranian President Masoud Pezeshkian appeared side by side on the English and Persian versions of a memorandum of understanding aimed at ending the war and opening a new diplomatic track between Washington and Tehran.

In an unprecedented diplomatic move, the first official joint document between the United States and Iran to be publicly released since the 2015 nuclear agreement was unveiled, amid regional and international scrutiny over its implications for Middle East security, particularly in Lebanon and the Strait of Hormuz.

The document, known as the “Islamabad Understanding,” reflects Pakistan’s role as a mediator between the two sides after plans for an in-person signing ceremony in Switzerland next Friday were abandoned.

How Was the U.S.-Iran Agreement Signed?

Contrary to the original arrangements, the memorandum was signed electronically and remotely, according to announcements from both Tehran and Washington, while Iranian state television said the planned meeting in Switzerland would no longer include an official signing ceremony.

🚨 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 spokesperson Esmaeil Baghaei told state television early Thursday that “the text of the memorandum of understanding has been signed in both Persian and English.”

Speaking to reporters on the sidelines of the G7 summit in France, Trump said: “I just signed it.”

Reuters reported that both presidents signed the memorandum digitally and that the agreement had entered into force, while Iranian state television said the ceremony originally scheduled in Switzerland was no longer necessary following the completion of the electronic signing process.

What Does the “Islamabad Understanding” Include?

According to the text of the memorandum published by international media outlets, the U.S.-Iran agreement includes an immediate halt to military operations on all fronts, including Lebanon, the full reopening of the Strait of Hormuz to maritime traffic, and the lifting of the U.S. naval blockade on Iranian ports.

The memorandum also provides for the full resumption of maritime trade and the launch of technical negotiations lasting 60 days with the goal of reaching a permanent agreement.

The provisions further include easing U.S. sanctions, releasing frozen Iranian assets, and establishing an investment fund for reconstruction, according to Reuters.

On the nuclear issue, Tehran reaffirmed its commitment not to develop nuclear weapons and agreed to reduce uranium enrichment levels under the supervision of the International Atomic Energy Agency.

U.S.-Iran Agreement and Its Impact on Lebanon and the Strait of Hormuz

The provisions related to Lebanon carry particular significance, as the memorandum extends the ceasefire by an additional 60 days to allow negotiations on broader security arrangements to continue.

In a joint statement issued during the G7 summit in Evian-les-Bains, France, leaders welcomed the U.S.-Iran understanding and called for a sustained ceasefire in Lebanon.

Despite the agreement, limited military operations continue along the Lebanese front, while Israel maintains that it is not bound by the deal because it did not participate in the negotiations.

Profile News previously examined the implications of the planned signing of the U.S.-Iran agreement in Switzerland, as well as its potential impact on the Strait of Hormuz and global energy markets.

According to data from the U.S. Energy Information Administration, approximately 20% of global petroleum liquids consumption passes through the Strait of Hormuz, making any agreement that ensures maritime stability a significant factor for global energy markets.

Trump Warns of Renewed Strikes

Despite welcoming the agreement, Trump warned that the United States could resume military operations if Iran fails to honor its commitments.

“We’re going to bomb the hell out of them if they violate the agreement,” Trump said, according to Reuters.

He added that the 60-day technical negotiations would determine the future of the agreement and the possibility of reaching a permanent settlement.

Israeli Silence and Warnings of a “Strategic Disaster”

Israeli Prime Minister Benjamin Netanyahu has not publicly commented on the signing of the memorandum.

Meanwhile, Axios, citing informed sources, reported that Netanyahu had not seen the final text of the agreement before it was announced.

Israeli media outlets reported that political and security circles view the U.S.-Iran understanding as a strategic shift that could alter regional dynamics.

Reuters also quoted Trump as saying he had urged Netanyahu to adopt a less aggressive approach in Lebanon.

“You don’t have to knock down a building every time somebody walks into it that’s from Hezbollah,” Trump said.

What Comes Next for the U.S.-Iran Agreement?

The U.S.-Iran agreement opens the door to a new two-month negotiation phase, with attention focused on whether both sides can transform the memorandum into a permanent arrangement addressing nuclear, security, and regional issues.

Despite the agreement entering into force, major questions remain over monitoring mechanisms, implementation guarantees, and the future of arrangements concerning Lebanon and U.S. sanctions.

While Washington and Tehran are betting on the success of the diplomatic track, the coming weeks are expected to determine whether the “Islamabad Understanding” can deliver long-term regional stability.