The United States and Iran have agreed on a roadmap to reach a final peace deal within 60 days, following negotiations at the Bürgenstock resort in Switzerland.
Qatar and Pakistan, acting as mediators, confirmed the breakthrough after hours of talks involving senior officials from both sides.
The agreement represents a significant de-escalation in the ongoing Middle East conflict.
Markets, which have been pricing in sustained geopolitical risk, are likely to reassess the probability of a prolonged military engagement.
The development follows a period of intense diplomatic activity aimed at halting hostilities and stabilizing the region.
This mutual understanding comes after previous rounds of talks left the status of a nuclear deal unclear.