Iran and US sign Islamabad MoU; Congress criticises government's foreign policy

The United States and Iran signed a peace deal on Thursday, June 18, 2026, brokered by Pakistan, with the agreement being called the 'Islamabad Memorandum of Understanding'. The Congress party has criticised the government, stating that the pact reflects Pakistan's growing regional influence and constitutes a setback to Prime Minister Narendra Modi's foreign policy.

According to details released by both countries, the 14-point MoU calls for Iran to dilute its stockpile of highly enriched uranium and requires the US to waive sanctions, immediately allowing Iran to sell its oil freely. The MoU also includes the reopening of the Strait of Hormuz by Iran and the lifting of the US naval blockade.

Pakistan Prime Minister Shehbaz Sharif announced the signing on X, stating: 'I am honoured to announce that the historic 'Islamabad Memorandum of Understanding' has been electronically signed today between the United States of America and the Islamic Republic of Iran. The Memorandum has been signed by honourable Presidents of both the countries and also endorsed by me as the mediator.'

Congress General Secretary Jairam Ramesh said on X: 'The fact that it is called the Islamabad MOU shows the new-found regional standing and global influence of Pakistan, a country that had once been isolated on the global stage by Dr. Manmohan Singh following the Mumbai terror attacks in November 2008.' He added that this is 'a severe setback to both the substance and style of Prime Minister Modi's foreign policy' and that 'Pakistan is now even more deeply embedded in the geopolitical and security architecture of West Asia which has grave and great implications for India.'

Mr. Ramesh noted that the MoU, if it holds, is a major advance, but also has the potential to become a 'Memorandum of Misunderstanding'. He said the next 60 days will be crucial. He also stated that the MoU is a defeat for Israel's Prime Minister Benjamin Netanyahu, who he said stands isolated internationally, and criticised Prime Minister Modi for his 'steadfast support' of Mr. Netanyahu's actions in the region. Mr. Ramesh argued that the MoU represents a blow to the US, which along with Israel started the war with Iran on February 28 with maximalist aims that have not been realised.

The government has not yet formally responded to the Congress's remarks. The MoU is expected to reshape geopolitical dynamics in West Asia, with Gulf countries cautiously welcoming the agreement.