The United States and Iran have agreed to an immediate cessation of hostilities in the Persian Gulf and will restart diplomatic negotiations concerning the Strait of Hormuz.
A U.S. official confirmed the development on Sunday, signaling a potential de-escalation in a conflict that has threatened one of the world's most critical energy transit corridors.
The agreement comes as markets have closely monitored the geopolitical stability of the region, where tensions have previously spiked insurance costs and disrupted tanker movements.
By committing to halt military actions, both parties aim to preserve an interim peace framework that has been under significant strain.
The talks are expected to focus on establishing secure transit protocols and addressing the underlying disputes that led to the recent escalation.
This development follows a period of heightened uncertainty, with previous reports indicating that the Islamic Revolutionary Guard Corps (IRGC) had insisted on designated transit routes, complicating earlier ceasefire discussions.