Iran and the U.S. have agreed to stop recent hostilities in the Gulf and resume talks over their dispute regarding the Strait of Hormuz, a U.S. official said Sunday, raising hopes of preserving an interim peace deal strained by days of reciprocal strikes.

"Technical talks are slated to continue on all areas of the MoU. Both sides will stand down for now and vessels can move ​freely," the official said, referring to the 14-point memorandum of understanding that was agreed on June 17, ​under ⁠which the Strait would be reopened for traffic. Axios, which first reported the cessation of hostilities, citing a senior U.S. official, said talks would resume Tuesday in Qatar.

A return to diplomacy would follow several days of strikes and counterstrikes since an Iranian projectile hit a cargo vessel in the Strait of Hormuz Thursday, with both the U.S. and Iran accusing the other of breaking an interim cease-fire that was agreed to on June 17.

Iran launched missiles and drones at U.S. military sites in Kuwait and Bahrain early Sunday, shortly after President Donald Trump threatened that the Islamic Republic would cease to exist if it did not honor the agreement to end the war.

Meanwhile, Israel said Sunday it had once again struck Iran-backed armed group Hezbollah in Lebanon, destroying underground infrastructure used by the group in a village in southern Lebanon.