Washington Policy Weekly: The United States and Iran Sign the Islamabad Memorandum of Understanding

I. Legislative Branch

1) Legislation

House Bill Would Bolster Defense Cooperation with Abraham Accords Countries. On June 15, Rep. Jimmy Panetta (D-CA) introduced H.R.9322, which would require the Secretary of Defense to establish an initiative to strengthen defense cooperation with Abraham Accords countries.

SFRC Advances Syria, Iran, Eastern Mediterranean, and Sudan Bills. On June 17, the Senate Committee on Foreign Relations held a business meeting and advanced several measures, including:

  • 3172, a bill to repeal additional sanctions on Syria.
  • 3900, a bill to promote human rights, internet freedom, and accountability in Iran.
  • 4443, the Eastern Mediterranean Gateway Act, which would expand US engagement in the Eastern Mediterranean, including through partnerships with Israel and Egypt, to advance energy, trade, and critical infrastructure and support the India-Middle East-Europe Economic Corridor.
  • 4726, the Peace in Sudan Act of 2026, which would seek to hold accountable those who perpetrate and support the war in Sudan.

II. Executive Branch

1) White House

Trump Criticizes Israeli Attacks on Lebanon at G7 Summit. On June 16, during a visit to the G7 summit in France, President Donald Trump rebuked Israel over its military offensive in Lebanon, saying that Prime Minister Benjamin Netanyahu needed to act more responsibly toward Lebanon and that Israel had been fighting Hezbollah for too long, with too many people killed. Trump suggested that Syria would handle Hezbollah better than Israel and that Israel owed its continued existence to the United States and to him personally. He also warned that “all hell will rain down” on Iran if it sought a nuclear weapon.

Additionally, Trump claimed that he had “never cared about regime change” as a goal of the US-Israeli war on Iran. However, on the war’s first day in late February, he said that he wanted freedom for the Iranian people and urged Iranians to topple the regime and take control of their government.

Trump and Iranian President Sign Initial Agreement to End War. On June 17, President Trump and Iranian President Masoud Pezeshkian signed a memorandum of understanding laying out terms to end the war and reopen the Strait of Hormuz. In remarks that day, Trump defended the agreement, saying that he was prepared to resume strikes if needed and rejecting reports that the United States would contribute to a $300 billion investment fund for Iran. He said instead that payouts by Gulf states were likely to be conditional on Iran’s good behavior. Trump also said that Iran should be allowed to keep some of its ballistic missiles.

Several Senate Republicans criticized the deal, with Sen. Bill Cassidy (R-LA) calling it “the worst foreign policy blunder in decades” and others questioning its sanctions relief and handling of Iran’s nuclear program. On June 18, Vice President JD Vance defended the agreement, dismissing Israeli critics and describing Trump as Israel’s only powerful ally.

Trump Says United States Will Charge Strait of Hormuz Tolls if No Final Iran Deal Is Reached. On June 20, President Trump said that no tolls would be charged for passage through the Strait of Hormuz during or after the 60-day ceasefire unless peace talks failed, in which case the United States could impose them “for services rendered as the Guardian Angel to the countries of the Middle East.” His statement followed a claim by Iran’s military that it had closed the strait, accusing the United States of a “clear breach of its commitments.” CENTCOM disputed the claim, saying that traffic continued to flow.

Trump Threatens Iran as Vance Hails “Progress” in Switzerland Talks. On June 21, President Trump threatened to attack Iran again unless it stopped Hezbollah from “causing trouble.” He also told Fox News that he had warned Iranian officials against closing the Strait of Hormuz, saying, “you close it and you won’t have a country.” The remarks came shortly after Vice President Vance hailed the “progress” made in US-Iran peace talks held in Switzerland that day.

2) Department of State

Department Approves Military Sale to Kuwait. On June 15, the Department of State approved a Foreign Military Sale to Kuwait of follow-on sustainment support for KC-130J aircraft and related equipment, with an estimated cost of $235.9 million.

Rubio Speaks with Lebanese President, Announces New Israel-Lebanon Talks. On June 19, Secretary of State Marco Rubio spoke with Lebanese President Joseph Aoun. According to a Department of State readout of the call, Rubio underscored that Lebanon’s negotiations with Israel “represent the only feasible path to reconstruction, economic recovery, and ending recurrent cycles of violence.” The two also discussed the next round of Israel-Lebanon negotiations, scheduled to take place in Washington from June 23 to 25.

3) Department of Defense

AFRICOM Conducts Strikes in Somalia. On June 15, 16, 18, and 19, US forces conducted airstrikes against al-Shabab in Somalia.

4) Department of the Treasury

Treasury Sanctions Lebanese Officials and Hezbollah Financial Network. On June 18, the Department of the Treasury’s Office of Foreign Assets Control sanctioned Lebanese officials it accused of obstructing Lebanon’s peace process and delaying Hezbollah’s disarmament. The named individuals included Sleiman Frangieh, incumbent leader of the Marada Movement, a Maronite Christian political party.

The Treasury also targeted members of the previously sanctioned Alaa Hamieh financial network in Iraq, Lebanon, Oman, and Syria, accusing them of raising funds and operating front companies to generate revenue for Hezbollah.

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