The United States and Iran have finalised a memorandum of understanding to halt all military operations, with a formal signing ceremony scheduled for Friday in Switzerland. The breakthrough, announced by Pakistani Prime Minister Shehbaz Sharif after intensive shuttle diplomacy, was swiftly confirmed by President Donald Trump and Iran’s Foreign Minister Abbas Araghchi. It marks the culmination of 108 days of escalating confrontation across multiple fronts, including direct exchanges in the Gulf and the war in Lebanon.

Viewed from Tehran, the scope of the agreement extends well beyond a bilateral ceasefire. Araghchi told foreign envoys that the parties to the understanding are not merely Washington and Tehran, but also Israel and Hezbollah, and that ending the war in Lebanon is an integral component of the wider cessation. He stressed that a complete termination of hostilities requires the withdrawal of Israeli forces from territories occupied during the fighting, framing the accord as a package that links maritime security, the Lebanese front, and the question of occupation.

The memorandum mandates an immediate and permanent ceasefire on all fronts, the reopening of the Strait of Hormuz, and the lifting of the US naval blockade on Iranian ports. At the United Nations, Secretary-General António Guterres hailed the accord as a decisive step toward a peaceful settlement, commending the constructive mediation of Pakistan, Qatar, Egypt, Saudi Arabia, and Turkey. Across the Arab world, Saudi Arabia’s foreign ministry explicitly welcomed the deal and the commitment to begin detailed negotiations within 60 days, reflecting the acute regional anxiety over a conflict that threatened to choke global energy supplies and ignite a multi-front war.

The text of the memorandum, to be published after Friday’s signing, sets the stage for a 60-day negotiating window aimed at resolving the more intractable disputes: Iran’s nuclear programme and the architecture of US sanctions. While the immediate cessation of hostilities offers a reprieve, the path to a durable settlement remains fraught. The sequencing of sanctions relief, verification of nuclear constraints, and the status of Israeli forces in Lebanon will test the fragile consensus. For now, however, the guns are set to fall silent, and the Strait of Hormuz — the artery for a fifth of the world’s oil — will reopen, offering a tentative but tangible dividend of diplomacy.