US and Iran Reach 'Islamabad Declaration' Text as Peace Deal Nears Signing

The United States and Iran appear closer than ever to ending their war, with Pakistan announcing early Saturday that a final, agreed-upon text of a peace deal has been reached between Washington and Tehran. Pakistani Prime Minister Shehbaz Sharif said peace has never been this close, crediting months of shuttle diplomacy that culminated in talks held in Islamabad earlier this spring. The emerging accord is reportedly being referred to informally as the "Islamabad Declaration" in recognition of Pakistan's central mediating role between the two longtime adversaries.

Iranian Foreign Minister Abbas Araghchi struck a more cautious tone, saying a memorandum of understanding has never been closer while warning against premature speculation about its contents. According to sources briefed on the matter, a formal signing ceremony would most likely take place in Geneva, Switzerland, conveniently timed near next week's G7 summit in France, where President Trump is expected to attend. US officials have described the emerging framework as a five-point, performance-based structure in which Iran would receive economic relief only after fulfilling specific verification obligations.

Significant hurdles remain before any agreement becomes durable. Sources indicate that the final missing piece may be a sign-off from Iran's Supreme Leader, with internal deliberations in Tehran described as being in their final stages. Israeli Prime Minister Benjamin Netanyahu has reportedly expressed skepticism that the deal currently being discussed is sufficiently hardline, and a senior US administration official acknowledged some Israeli unease over how details have been reported in the press. The official stressed that any final agreement would be one that the broader region could accept.

Notably, the broader regional peace framework is understood to extend beyond the US-Iran bilateral relationship to include Lebanon, Israel, and Gulf states. The US official did not rule out future Israeli military action in Lebanon should Hezbollah threaten to derail the diplomatic process, framing any such response as a matter of self-defense rather than a violation of the emerging peace architecture. With the war having dragged on through multiple rounds of negotiations since April 2025, spanning Oman, Italy, Switzerland, and Pakistan, markets and governments worldwide are now watching closely for confirmation of a signing date.