A US-Iran agreement announced after a three-month war has brought an end to major hostilities and reopened diplomatic channels, but analysts say the deal leaves Washington facing unresolved challenges while strengthening Tehran’s position. The Islamabad Memorandum of Understanding (MoU), announced on June 14, provides for an initial 60-day period of negotiations aimed at reaching a broader peace agreement.
The agreement was announced by Pakistani Prime Minister Shehbaz Sharif, who said both sides had agreed to an immediate and permanent end to military operations on all fronts, including Lebanon. US President Donald Trump later described the agreement as “The Deal” and said he had authorised the reopening of the Strait of Hormuz, a key global shipping route through which a significant share of the world’s oil and natural gas passes.
The announcement came after weeks of conflict involving Iran, the United States and Israel. Trump had publicly expressed his desire to secure an Iran peace agreement, but tensions escalated after Israeli strikes against Hezbollah-linked areas in Lebanon. Trump criticised Israeli Prime Minister Benjamin Netanyahu over the timing of the attacks, according to comments reported by US news outlet Axios.
With the agreement now in place, attention has shifted to who gained the most from the outcome. Karim Emile Bitar, an international relations professor at Saint Joseph University in Beirut and Sciences Po in Paris, said the deal represented a benefit for the Iranian government because the reopening of the Strait of Hormuz restored a situation that existed before the war. He argued that Iran demonstrated the strategic importance of controlling access to the waterway.
The full details of the memorandum are expected to be released after an official signing ceremony. Reports based on multiple sources indicate that the agreement includes a 60-day cessation of hostilities during which both sides will negotiate issues including Iran’s nuclear programme and US sanctions.
The reopening of the Strait of Hormuz is a central element of the agreement. Trump said commercial shipping would resume without tolls, while Vice President JD Vance said the US expected the waterway to remain open in the long term. However, maritime tracking data had not shown a significant increase in traffic after the announcement, and minesweeping operations are expected to continue for several weeks.
The agreement also addresses Iran’s nuclear programme, though details remain limited. Trump said the issue of Iranian enriched uranium would be handled during future negotiations. Iranian officials said Tehran would freeze nuclear activities, including uranium enrichment and expansion of nuclear facilities, while talks continue.
The nuclear dispute has remained unresolved since Trump withdrew the United States from the 2015 Joint Comprehensive Plan of Action (JCPOA) during his first presidency. Under that agreement, Iran limited uranium enrichment to 3.67 percent and accepted inspections by the International Atomic Energy Agency. After the US withdrawal, Iran announced plans to enrich uranium to 60 percent.
Bitar said the new agreement had not yet produced major concessions from Iran and compared it with the earlier nuclear agreement, which involved the United States, Europe, Russia, China and the United Nations. He argued that the current situation reflected unresolved issues from the collapse of the JCPOA.
The agreement also includes discussions over sanctions and frozen Iranian assets. An Iranian official said Washington had agreed not to impose new sanctions during negotiations and would consider releasing frozen funds, while Trump said Iran would not receive direct cash payments and that sanctions relief remained under discussion.
Regional issues, particularly Lebanon, remain another challenge. Sharif said the ceasefire covered all fronts, including Lebanon, but Israeli officials said Israeli forces would remain in areas captured in Lebanon, Syria and Gaza. Iranian officials said the United States would be responsible for ensuring that Israel stopped attacks against Lebanon.
Experts cited in the report said the outcome had strengthened Iran’s leadership after the conflict. Negar Mortazavi of the Center for International Policy said Iran had used its geographic position and control over the Strait of Hormuz as leverage during negotiations. Other analysts said the agreement had not changed the situation for ordinary Iranians, who continue to face economic difficulties.
The next phase of the agreement will depend on negotiations over Iran’s nuclear activities, sanctions relief and regional security arrangements. The memorandum has halted the immediate fighting, but major disputes between Washington and Tehran remain unresolved.
