Pakistan served as the guarantor and lead negotiator in a peace deal between the United States and Iran to end their war [1].

This agreement is critical because it aims to restore regional stability and reopen the Strait of Hormuz, a strategically vital waterway for global trade [1, 3].

Prime Minister Shehbaz Sharif acted as the chief mediator alongside U.S. President Donald Trump and Iran's representative Masoud Pezeshkian [1, 2]. The diplomatic process culminated in the signing of the Islamabad Memorandum of Understanding on June 18, 2026 [4].

By hosting the signing ceremony in Islamabad, Pakistan has sought to position itself as a regional peace broker [1, 5]. The negotiations focused on finalizing the terms necessary to cease hostilities and ensure the free flow of maritime traffic through the strait [2, 4].

Masoud Pezeshkian said, "I appreciate Pakistan's role in the negotiations" [3].

Analysts suggest the move represents a significant shift in the country's foreign policy. Joshua Kurlantzick of the Council on Foreign Relations said, "Pakistan has emerged as an unlikely but indispensable mediator in the negotiations" [5].

Throughout the week, officials reported that the U.S. and Iran had agreed on the final text of the peace deal [6]. The memorandum serves as a formal commitment to end the conflict, and stabilize the volatile region [1, 4].

Pakistan has emerged as an unlikely but indispensable mediator in the negotiations.

The role of Pakistan as a guarantor in the Islamabad Memorandum signifies a strategic pivot in South Asian diplomacy. By successfully mediating between two global powers, Pakistan is attempting to transition from a security-focused state to a diplomatic hub, potentially increasing its leverage with both Washington and Tehran while securing the economic stability of the Strait of Hormuz.