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Truce Holds Under Islamabad MoU as U.S. Congress Rebukes Trump and Pentagon Seeks $80 Billion

The interim agreement pauses fighting and opens a 60-day technical window that will test verification, frozen assets and Strait of Hormuz arrangements

Overview

  • The Islamabad memorandum of understanding, signed electronically in mid‑June, has paused active hostilities and set a 60-day technical phase for negotiators to work out IAEA inspections, sanctions sequencing and maritime safety.
  • IAEA chief Rafael Grossi said inspections ‘are going to happen’ even as U.S. and Iranian officials publicly dispute the scope and timing of on‑site nuclear verification.
  • The U.S. Senate delivered a 50-48 concurrent resolution Tuesday directing President Donald Trump to remove U.S. forces from hostilities unless Congress authorizes action, but legal experts say the nonbinding measure does not require presidential approval.
  • The Pentagon notified lawmakers and the Office of Management and Budget of an approximately $80 billion supplemental request to cover war costs and replenish munitions, setting up a contentious funding fight on Capitol Hill.
  • Commercial and regional risks remain high: the IMO has begun an evacuation plan for about 11,000 seafarers, Iran has floated future fees for Strait transit that the U.S. rejects, and unresolved issues in Lebanon, frozen assets and verification leave the truce fragile as talks continue next week.