• Pakistan says final text of a peace deal between the US and Iran has been reached, after weeks of mediation in Islamabad.
  • The deal includes a ceasefire extension and principles on sanctions relief and non-aggression, but requires final approval from both sides' leaders.
  • A formal signing could reshape energy markets and regional geopolitics, with Pakistan positioned as a key intermediary.

Peace Deal Text Agreed, Pending Leadership Approval

Pakistan’s prime minister, Shehbaz Sharif, announced on Thursday that the final, agreed-upon text of a peace deal between the United States and Iran has been reached, following direct talks hosted in Islamabad. According to people familiar with the matter, the proposed framework includes a 60-day extension of the current two-week ceasefire and outlines broad principles on sanctions relief and guarantees of non-aggression. However, the deal has not yet been signed; senior leadership in both Washington and Tehran must still approve and formally endorse the text.

“Efforts to resolve the US–Iran conflict have reached a pivotal moment,” Sharif said in a statement, noting that Islamabad had worked “around the clock” to bridge differences. The announcement marks a significant step in de-escalating tensions that have roiled the Middle East since early 2026. Negotiators have described the talks as “inches away” from a breakthrough in recent weeks, with sources citing a draft memorandum of understanding that would serve as the basis for a more comprehensive accord.

Market Implications and Regional Reactions

News of the agreed text sent oil prices lower in early trading, as markets priced in a potential easing of sanctions on Iranian crude exports and reduced risk premiums for Gulf shipping lanes. Analysts caution that until both leaders sign off, the deal remains fragile. “Without a final sign-off, we’re in a state of cautious optimism,” said a Gulf-based energy analyst. “But the trajectory is clear: both sides want an off-ramp.”

Pakistan’s role as mediator carries strategic weight, potentially unlocking economic benefits for Islamabad including enhanced trade ties and energy security collaborations. The development also draws scrutiny from Israel and Gulf states, who are watching for provisions on Iran’s nuclear and missile programs. Attempts to reach Iran’s mission to the UN for comment were unsuccessful; the White House declined to comment on the specifics of the text.

Background and Next Steps

The talks build on a two-week ceasefire brokered by Pakistan in early April, which has largely held despite sporadic incidents. Previous US–Iran negotiations, including the 2015 JCPOA, collapsed over disagreements on verification and regional proxies. The current deal is expected to establish a joint monitoring mechanism and a phased sanctions relief process. A senior Pakistani official said the next step is for both sides to “synchronize their approvals,” which could come within days.

Correction: An earlier version of this article misstated the duration of the ceasefire extension; it is 60 days, not 90. This has been corrected.