Iran declares full suspension of its commitments under the Islamabad memorandum, accusing the US of violations

Kazem Gharibabadi, Iran's deputy foreign minister, said on Saturday, 18 July 2026 that Iran had suspended all of its commitments under the Islamabad memorandum of understanding, accusing the United States of violating the agreement. He said the US had violated and suspended all of its own commitments within the framework, and that Iran had likewise suspended its commitments and was no longer implementing them.

The memorandum, signed last month under Pakistani mediation, reportedly comprised 14 points, including reopening the Strait of Hormuz, lifting the US naval blockade and beginning a phased de-escalation. The suspension came after seven consecutive nights of US strikes and waves of Iranian missile and drone responses.

The unraveling of this diplomatic framework carries direct weight for domestic markets: on the same Saturday, 27 Tir, the free-market dollar closed above 193,000 tomans and Tehran's main stock index ended down more than 2 percent.