US and Iran will halt strikes and vessels will move freely as technical talks between the two are set to continue, a US official said.
US and Iran exchanged fire over the weekend, with both accusing the other of violating the interim peace deal signed earlier this month.
The talks between US and Iran are set to resume in Qatar on Tuesday.
The United States and Iran will stand down on strikes and vessels will be allowed to move freely, as technical talks are slated to continue on the memorandum of understanding (MOU) between the countries.
"Technical talks are slated to continue on all areas of the MOU. Both sides will stand down for now and vessels can move freely," a US official told Reuters on Sunday local time.
The talks include arrangements around the Strait of Hormuz, the removal of a US blockade on Iranian ports and sanctions on Iran, and the future of Iran's stockpile of highly enriched uranium.
The two sides have 60 days from their signing of the memorandum of understanding earlier this month to work out details.
The comments of the US official came after the US and Iran exchanged fire amid rising tensions that threatened the interim deal between the two countries to stop the war.
The US launched strikes on Iranian military infrastructure near the Strait of Hormuz early on Sunday morning, saying it was in response to Iranian attacks on commercial shipping.
Iran then launched strikes targeting US allies Kuwait and Bahrain, prompting the US to launch a second round of air strikes, which Iran again retaliated against.
Both sides accused the other of violating the interim peace deal, which stated military operations would cease permanently on all fronts.
Axios, which first reported the cessation of hostilities, citing a senior US official, said talks would resume on Tuesday in Qatar.
