What happened
Prime Minister Shehbaz Sharif said on Friday, 12 June 2026, that a “final, agreed-upon” text of a peace deal between Iran and the United States had been reached, and that Pakistan was working closely with both sides to finalise the next steps.
“We can confirm that a final, agreed-upon text of the peace deal has been reached and Pakistan is now working closely with both sides to finalise the next steps,” he wrote on X. “Peace has never been as close as it is now,” the prime minister added, warning of an “incessant misinformation campaign being waged by those who want to sabotage the peace deal”.
His statement followed comments by Iranian Foreign Minister Abbas Araghchi, who said a deal to end the war in the Middle East had never been closer and referred to it as the “Islamabad memorandum of understanding”. Araghchi urged media outlets to refrain from speculating about its contents until it was finalised, saying all details would be shared with the public in due course.
Leaked terms of the proposed memorandum, described by Western, Pakistani and Iranian sources, appeared to favour Iran, drawing criticism from US President Donald Trump, who called the reports inaccurate. “The terms that Iran leaked out to the Fake News have NOTHING to do with the terms that were agreed to, in writing,” Trump wrote on his Truth Social platform. He later reposted a post by Araghchi.
A Western source said that if the language can be agreed, the memorandum could be signed as soon as Sunday by US Vice President JD Vance and Iran’s parliament speaker, Mohammad Baqer Qalibaf, with Geneva for now seen as the likeliest venue. Vance said the Iranians were “not receiving any cash” and that no funds would be released simply for signing a deal or attending a meeting, adding that economic benefits would flow only if Iran met its obligations. A senior US official said Iran’s stockpile of highly enriched uranium “will be destroyed and removed” and its nuclear programme dismantled.
Under terms described by sources, the US would begin releasing billions of dollars in unfrozen Iranian assets and waive sanctions on Iranian oil exports in return for Iran reopening the Strait of Hormuz, which it had shut after the US and Israel launched attacks in February. Discussion of Iran’s nuclear programme would be set aside for a 60-day period of talks on a final settlement, alongside discussion of war reparations and the dropping of longstanding demands to curb Iran’s missile programme, the sources said.
Israel, which jointly launched the war with the United States, has so far been excluded from the negotiations. Prime Minister Benjamin Netanyahu said his country would not be party to the memorandum, and Israel’s defence minister said Israel would not withdraw from territory in Lebanon.
Why it matters
A deal would end a war that has disrupted shipping through the Strait of Hormuz, a chokepoint for global oil and gas. For Pakistan, which has mediated between Washington and Tehran for months, the announcement is a diplomatic high point, coming less than three weeks after PM Shehbaz told Iran’s president he hoped a deal would materialise soon. But the accounts of the text diverge sharply: Washington says no cash is released up front and that Iran’s nuclear programme will be dismantled, while the leaked terms described by other sources focus on unfrozen assets and sanctions relief. That gap means the substance of the memorandum remains contested even as both sides describe it as close to final.
What is still uncertain
The memorandum had not been signed, and the venue and signatories were not confirmed. Language on ceasing hostilities in Lebanon was still unresolved, and Israel’s exclusion from the talks could complicate implementation. Trump’s denial of the leaked terms shows the two sides do not yet publicly agree on what the text contains, and Araghchi’s call to avoid speculation suggests details may still change.
Sources & reporting notes
This is a summary of published reporting, not independent reporting. Details are as carried by the cited source, which was reviewed on 2026-06-12. The deal had not been signed and the terms described were disputed at the time of writing.
- Geo News — "Mediator Pakistan says Iran-US peace deal text 'agreed'"12 June 2026 · PM Shehbaz's statement, Araghchi's remarks, Trump's response and the reported terms of the memorandum.
- Radio Pakistan — "Final text of peace deal agreed, next steps being finalized: PM"12 June 2026 · The prime minister's statement and Pakistan's mediation role.
