A 14-point memorandum of understanding was signed earlier this month, under which Tehran and Washington agreed to cease all fighting and reopen the Strait of Hormuz while a permanent peace deal was negotiated. Yet tensions remain high, with both sides accusing the other of breaching the deal’s terms. Tit-for-tat strikes continued to be exchanged over the weekend.
US president Donald Trump also took to social media to warn: "There may come a point when we are no longer able to be reasonable, and will be forced to militarily complete the job that we very successfully started."
But the US has since apparently confirmed that both sides will "stand down".
First reported by Axios, multiple media outlets cited an unnamed US official as saying: "Technical talks are slated to continue on all areas of the MoU. Both sides will stand down for now and vessels can move freely."
Talks are due to resume in Qatar on Tuesday, the official added. Iran has yet to make any comment.
Oil prices nudged higher, although they remain well below the peaks seen during the height of the war. As at 0930 BST, benchmark Brent crude was up 1% at $72.47 a barrel while West Texas Intermediate was 1% higher at $70.02.
Russ Mould, investment director at AJ Bell, said: "The scale of the price hike wasn’t as bad as it could have been, helped by reports that the US and Iran would stand down once again. Investors will want greater reassurance that the ceasefire is lasting and not a flash in the pan."