The United States and Iran have agreed to halt recent hostilities in the Gulf and resume negotiations over the Strait of Hormuz, raising hopes of preserving an interim peace agreement after days of escalating military exchanges.

A U.S. official said both countries had agreed to stand down and continue technical discussions on a 14-point memorandum of understanding reached on 17 June. The agreement is aimed at reopening the strategic Strait of Hormuz to commercial shipping while negotiations continue on broader issues, including Iran’s nuclear programme.

The latest breakthrough follows several days of tit-for-tat attacks after an Iranian projectile struck a cargo vessel in the Strait of Hormuz on Thursday. Both Washington and Tehran accused each other of violating the interim ceasefire.

Earlier on Sunday, Iran launched missiles and drones at U.S. military bases in Kuwait and Bahrain, shortly after U.S. President Donald Trump warned that Iran would face severe consequences if it failed to honour the agreement.

Meanwhile, Israel said it had carried out fresh strikes against Hezbollah targets in southern Lebanon, targeting underground infrastructure linked to the Iran-backed group. Tehran has insisted that stability in Lebanon is essential for the wider regional agreement to hold.

The Strait of Hormuz, one of the world’s busiest energy shipping routes, remains central to efforts to reduce tensions as diplomatic talks are set to resume.

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