JAKARTA/WASHINGTON — A memorandum of understanding between the United States and Iran appeared on the verge of being finalized on Sunday, June 14, 2026, as US President Donald Trump announced the agreement would be signed within 24 hours, even while Iranian officials expressed caution over the timeline and market traders responded by sharply reducing oil war-risk premiums.
Pakistani Prime Minister Shehbaz Sharif confirmed on Saturday that the two sides had agreed on a final text for the so-called “Islamabad Agreement,” which is being brokered jointly by Qatar and Pakistan. Sharif stated that the United States and Iran had agreed to a framework for a peace treaty and that Pakistan was preparing for an electronic signing within the next 24 hours. However, Tehran’s foreign ministry subsequently stated it had “not yet made a final determination” on the timeline, creating a discrepancy between Washington’s and Islamabad’s optimism and Tehran’s stated position.
Key Terms of the Proposed Agreement
According to diplomats from mediating nations cited by Axios, the proposed memorandum of understanding (MOU) includes specific provisions for regional security and nuclear non-proliferation. The agreement calls for the immediate reopening of the Strait of Hormuz without tolls, with shipping expected to return to pre-war levels within 30 days.
The framework would extend a ceasefire by 60 days, during which formal nuclear negotiations would take place. Iran would pledge never to develop a nuclear weapon and commit to resolving issues surrounding its enriched uranium stockpile. However, diplomats noted that concrete steps on the nuclear program would likely depend on the successful conclusion of a second, more comprehensive agreement.
The question of Iran’s frozen assets remains a contentious detail. Iranian state media reported the deal would demand the release of $24 billion in frozen funds, while US officials have indicated any release would be incremental and tied to compliance. Discussions have also centered on a mechanism allowing Iran access to some frozen assets in Qatar for humanitarian purchases.
Oil Markets React to Peace Signals
Global energy markets responded swiftly to the diplomatic developments, unwinding premiums added due to fears of a wider regional conflict. Brent crude settled at $87.33 per barrel on Friday, down $3.05 (3.37 percent), marking its lowest level since early March. West Texas Intermediate (WTI) dropped $2.83 (3.23 percent) to $84.88 per barrel, its lowest since mid-April.
The declines came atop earlier losses for the week, with Brent having traded above $101 as recently as early June. In related commodity markets, gold futures settled up 3 percent at $4,238.80 per ounce on Friday, recovering from earlier losses as inflation concerns eased, though the metal posted its second consecutive weekly loss. Silver futures rose 6.22 percent to $67.86 per ounce.
Uncertainty Persists Over Timeline
Despite confirmations from Washington and Islamabad, the signing was not listed on President Trump’s public schedule as of Sunday morning. The BBC reported that Iran cast doubt on the timeline even as Trump confirmed the planned signing, highlighting the gap between the announced roadmap and Tehran’s public stance. The proposed agreement, if finalized, would be formally known as the Islamabad Agreement.
Security analysts note that while the framework addresses immediate security concerns like the Strait of Hormuz and a ceasefire extension, the dependence on a second agreement for nuclear specifics introduces potential for future negotiation friction.
Current Status
As of Sunday evening, the agreement remains in the final pre-signing phase, with Pakistani officials preparing for an electronic signing while Iranian officials maintain a cautious public posture. The US has confirmed the deal is ready, but the finalization depends on Tehran’s formal acceptance of the timeline.
Content Disclaimer: This report covers developing diplomatic events and includes claims or statements from multiple parties (US, Iranian, and Pakistani officials) whose accounts regarding the signing timeline differ. Readers are encouraged to consult primary sources and multiple verified outlets for full context.
Sources: Reuters, Axios, Bloomberg, BBC, Al Jazeera — June 14, 2026
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