The US and Iran have decided to halt their attacks and to "stand down" after an exchange of strikes over the past few days.
As reported by the BBC, the US officials shared that the vessels will now be able to move through the Strait of Hormuz "freely" and that the talks to end the war will continue to take place.
"Both sides will stand down for now, and vessels can move freely," the unnamed official said.
The confirmation came after several attacks in and around the waterway were reported, with both the countries accusing each other of violating the ceasefire agreement.
What Iran said about the 'stand down' decision?
As the US officials announced the halting of the strikes, Iran has not made any comment on the reports.
Technical talks with Iran 'on track'
The US and Iran have agreed to meet in Doha, Qatar, on Tuesday, June 30, for further discussion, said another US official.
"Nothing has been cancelled. Technical talks regarding the implementation of MoU are on track for the coming days as planned, and deconfliction channels are up and running after the Lake Lucerne Summit," the official said, referring to recent talks in Switzerland led on the US side by Vice President JD Vance.
What caused the tension between the US and Iran again?
On June 17, the US and Iran signed a 14-point Memorandum of Understanding (MoU), which included an "immediate and permanent termination of military operations on all fronts".
Moreover, as part of the deal, Iran had agreed to use its "best efforts for the safe passage of commercial vessels with no charge for 60 days".
However, things went downhill after a drone attack on a cargo ship in the Strait of Hormuz, which led to the suspension of a planned evacuation of thousands of sailors stuck in the region.
Following the attack, which Iran said was because the ship was using an unauthorised route, the US launched a "powerful response" as it targeted Iranian missile and drone stroage facilities and coastal radar positions.
The cargo ship hit by a projectile on Thursday was the Ever Lovely, a Singapore-flagged vessel, as it was exiting the Strait of Hormuz along the Omani coast, said the US Central Command.
Ever Lovely’s owner company, Evergreen Marine, said in a statement that the ship sustained damage to its bridge windows, but no injuries were reported, and the cargo on board was safe.
On Saturday, Iran responded with strikes on US bases in Kuwait and Bahrain, with the US announcing that no casualities and damage took place.
Iran warns Bahrain amid retaliatory attack
An adviser to Iran’s supreme leader has warned Bahrain that Tehran would strike the country with greater force if provoked.
"A serious warning is being given to the Bahrainis to know their limits and not play such games with their own fate and not force Iran to adopt harsh decisions," Ali Akbar Velayati said, as reported by the semi-official Tasnim News.
Closing of the Strait of Hormuz
Iran closed the Strait of Hormuz after US and Israeli attacks against the country began at the end of February.
The shutdown of the critical waterway for oil and gas shipments caused a spike in global oil prices.
Oil prices see a huge spike
Oil prices have risen following days of strikes by the US and Iran that once again disrupted shipping through the Strait of Hormuz.
Brent crude futures climbed 58 cents, or 0.8 per cent, to $72.57 a barrel at 02:07 GMT, while US West Texas Intermediate crude was at $70.11 a barrel, up 88 cents, or 1.3 per cent.
This comes after Brent crude fell 10.6 per cent last week, in its third weekly decline, after crude shipments through the strait rose to their highest level since the US-Israel war on Iran began in late February.
