Mediators Brokered US-Iran Deal, Later Canceled, While Challenges Persist in Fresh Negotiations

A fragile peace deal between the United States and Iran took weeks of intense backroom diplomacy to reach — and it nearly collapsed several times along the way. The interim agreement, signed on June 17, formally ended a war that killed thousands, displaced one-sixth of Lebanon's population, and sent shockwaves through the global economy, according to AP News.
The deal came together through a dual-track mediation effort led by Pakistan and Qatar. But with a 60-day deadline now ticking for a final nuclear and regional peace agreement, major challenges remain — including violence in Lebanon, disputes over the Strait of Hormuz, and deep skepticism from Israel, Newsday reported.
The closest the deal came to dying was June 11. U.S. and Iranian forces exchanged escalating strikes that day. Qatari mediators were stranded on a tarmac in Tehran. President Trump posted online that he would hit Iran "VERY HARD TONIGHT" and threatened to seize "total control" of its oil industry, according to AP News.
What stopped further strikes was a flurry of emergency phone calls. Trump spoke directly with Qatar's Emir. Pakistan's army chief, Field Marshal Asim Munir, worked the phones behind the scenes. By June 12, the U.S. had called off its next strike package. Vice President JD Vance later called Munir a "great diplomat," BBC News reported.
Field Marshal Asim Munir emerged as the most unlikely key player. Analysts say his "unique network across Washington and Tehran" made him irreplaceable, according to Daily Sabah. Trump praised him publicly, calling him a "great general." It was Munir who maintained a direct line to the U.S. president throughout the crisis.
Pakistan's motivation was not purely diplomatic. The country is currently carrying a $7 billion IMF loan, Al Jazeera noted. Reopening regional energy trade — including the long-stalled Iran-Pakistan gas pipeline — would provide significant economic relief. Peace was in Islamabad's financial interest, not just its strategic one.
The formal agreement, called the Islamabad Memorandum of Understanding, was signed by both presidents on June 17. It ended the state of war and extended the ceasefire by 60 days. High-level talks followed at the Bürgenstock resort in Switzerland, where Vice President Vance and Iranian Foreign Minister Abbas Araghchi agreed on a "roadmap" for a final deal, according to Al Jazeera.
Araghchi hailed "major progress" on two fronts: ending military operations in Lebanon and unfreezing Iranian assets. The deal also includes a proposed $300 billion international reconstruction fund for Iran, BBC News reported. Global oil prices have already dropped in anticipation of Iranian crude returning to world markets.
The hardest part may still be ahead. Israel's Prime Minister Benjamin Netanyahu insists the ceasefire does not cover Lebanon — a claim Iran disputes, Global News reported. Fighting between Israel and Hezbollah remains the most volatile piece of the agreement. Any flare-up there could unravel the broader framework.
The Strait of Hormuz is another flashpoint. A "de-confliction cell" has been set up to keep the waterway open. But experts at the Council on Foreign Relations warn the Islamabad MoU is still just a "fragile memorandum" — not a structured treaty. Technical talks on Iran's nuclear program, the core issue that started this crisis, have barely begun. The 60-day clock is ticking, according to Guardonline.
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