Iran’s Foreign Ministry confirmed on Saturday, June 13, that the signing of the Islamabad Memorandum of Understanding with the United States will not take place on Sunday, deflating expectations of an imminent end to months of war in the Gulf. Spokesperson Esmaeil Baghaei made the announcement via state media, directly contradicting statements from Pakistani Prime Minister Shehbaz Sharif, who had declared a “final, agreed-upon text” ready for signature. The news landed as diplomatic teams from Washington and Tehran remained in active contact over the terms of a deal that would, among other things, reopen the Strait of Hormuz.
Baghaei did not close the door entirely. He said a signing in the coming days could not be ruled out, but warned that any comment on timing required caution due to what he described as the “hesitation of the other side” — a pointed reference to Washington. “We are now in the finalization stage of this memorandum of understanding,” Baghaei said in a televised interview on Saturday. “The topics being discussed at this stage focus broadly on ending the war, halting the US naval aggression — what they themselves have labeled a ‘naval blockade’ — and issues related to the release of Iran’s blocked assets.”
That framing contrasts with the confidence projected from Islamabad and Washington earlier in the week. On Thursday, U.S. President Donald Trump told reporters he had called off planned airstrikes on Iran because a deal was now in hand. “We just made a great settlement of the war with Iran,” Trump said at the White House, adding that Vice President JD Vance would attend the signing, which he suggested could happen “over the weekend in Europe.”
Four U.S. Air Force C-17 transport planes had already departed for Europe in preparation for a potential Vance trip to Geneva, according to Axios. Reuters reported Friday that Geneva was emerging as the likeliest signing venue, with the aim of finalising language by Saturday.
None of that materialized on schedule.
Iranian Foreign Minister Abbas Araghchi had himself struck a cautiously optimistic tone on Friday, posting on X that the Islamabad Memorandum of Understanding had “never been closer,” while urging the media to stop speculating about its contents. “In line with our responsible and transparent approach, all details will be shared with the public in due course,” Araghchi wrote. But Iranian media aligned with hardline factions pushed back sharply, with the semi-official Fars News Agency reporting that any plan for a signing ceremony in Geneva or a face-to-face meeting between Vance and Iranian officials amounted to a “mistaken understanding of US proposals and wishes.” Professor Mohammad Marandi, a political analyst close to Iranian negotiators, posted on X on Friday: “Nothing is happening in Geneva on Sunday. There is still work to do.”
The Wall Street Journal reported, citing a U.S. official, that Vance had been expected to travel to Geneva for the signing. That same official stressed any easing of sanctions would remain conditional on Iran taking concrete steps related to its nuclear programme. Vance himself told reporters this week: “The president is going to get us a good outcome, one way or the other,” adding that Iran would not receive access to blocked funds merely for signing a document.
The gap between the two sides goes beyond timing. Iran’s position, as stated by Baghaei on Saturday, is that the deal must address all active fronts — including Lebanon, where Israel has continued operations against the Iran-backed Hezbollah militia. Iran’s 14-point proposal has been the basis of its negotiating posture throughout the talks, and Tehran has insisted that any agreement must include a resolution for Lebanon “and all other fronts,” according to Araghchi’s statements carried by CNN.
Washington has a different set of priorities. A senior U.S. administration official told NBC News that the deal would be “performance-based,” with no financial relief reaching Iran until it honours specific commitments. The White House has also been clear, through deputy chief of staff Stephen Miller, that President Trump holds a hard line against Iran developing nuclear weapons and is prepared to use military force if that threshold is crossed.
Pakistan’s Army Chief, Field Marshal Asim Munir, visited Tehran on Saturday at the head of a delegation, in what Baghaei described as an effort to “continue the exchange of messages between Tehran and Washington.” Munir has been central to the mediation effort. According to the Financial Times, he visited Tehran earlier in the month in full military uniform and returned to brief Trump directly. Pakistan’s Dawn newspaper reported that Islamabad still hopes to bring the parties to agreement, despite the delay.
The memorandum under negotiation would, according to multiple sources, address four core issues: ending the war, lifting the U.S. naval blockade of Iranian ports, releasing Iran’s frozen assets, and establishing a framework for talks on the Iranian nuclear programme. Araghchi said in a separate interview carried by the Islamic Republic News Agency that the blockade would be lifted and frozen assets released once the memorandum is signed. He added that a reconstruction plan has been included in the agreement to cover war-related damage.
Iran’s Parliament Speaker Mohammad Bagher Ghalibaf, who led the Iranian delegation at the Islamabad talks in April, posted a pointed reminder on X this week: “Commitments made must be commitments kept. No ifs, no buts, no excuses.”
Background
The 2026 Iran war began on February 28 when joint U.S.-Israeli airstrikes killed Iran’s Supreme Leader Ayatollah Ali Khamenei and other senior officials in Tehran. Iran responded with missile and drone strikes on Israel and several Gulf states. Pakistan, which shares a 900-kilometre border with Iran and has long-standing ties with both Tehran and Riyadh, brokered a ceasefire and hosted the first direct round of U.S.-Iran peace talks at Islamabad’s Serena Hotel on April 11 and 12. Those talks collapsed without agreement over unresolved disputes on the Strait of Hormuz and Iran’s nuclear programme. The U.S. subsequently imposed a naval blockade of Iranian ports from April 13. A second attempt at direct negotiations, with Qatari mediation playing a central role alongside Pakistan, moved the parties closer to a draft MOU in recent weeks.
What Happens Next
Iran has left open the possibility of signing within days, according to Baghaei, but has not confirmed a date or venue. Technical-level talks between the two sides are expected to follow any signing, with Islamabad reported by the Wall Street Journal as a likely host for those subsequent discussions. The G7 summit in Evian, France, runs from June 15 to 17, and senior U.S. officials have said a deal could be signed on its sidelines or nearby. A senior U.S. official told reporters on Friday that no decisions about timing or location have been finalised. The Strait of Hormuz remains under partial blockade, with the U.S. military shooting down two Iranian one-way attack drones near the waterway on Thursday after Tehran attempted to strike commercial vessels transiting the strait, according to a U.S. official cited by Reuters.
