US and Iran sign deal to end war, reopen Hormuz Strait amid stability concerns

A landmark memorandum of understanding between the US and Iran, aimed at ending the war and stabilizing global energy markets, was electronically signed by President Donald Trump and Iranian counterpart Masoud Pezeshkian. The agreement, signed at the Palace of Versailles with French President Emmanuel Macron present, mandates Iran's immediate reopening of the Strait of Hormuz and the US lifting its naval blockade.

Pakistani Prime Minister Shehbaz Sharif, who mediated the deal, announced on social media that the "Islamabad MOU" would take effect immediately. The 14-point agreement appears to favor Iran, with Washington making substantial concessions. Niu Xinchun, director of the China-Arab Research Institute at Ningxia University, noted that the US seems more desperate to disengage from the conflict, leading to these concessions.

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the “Islamabad MOU” would enter into force with immediate effect and, as a first step, Iran would instantly reopen the Strait of Hormuz while the US would “immediately lift the naval blockade”.

While the deal addresses critical issues for Iran, its long-term viability remains a concern for observers. The agreement is described as being built on "ground too shaky to guarantee a lasting peace," suggesting that underlying uncertainties could undermine its effectiveness.

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At present, it appears that the United States has made more concessions, largely because Washington is more desperate to disentangle itself from the war.