The US and Iran have agreed to "stand down" following an exchange of strikes over the past few days, media reports say citing a US official.
It comes after several attacks in and around the Strait of Hormuz, culminating in both nations accusing each other of violating their ceasefire.
The official confirmed to the BBC's US partner CBS News that vessels will now be able to move through the waterway "freely", and added that renewed talks aimed at ending the war will continue.
Iran has not commented on the reports that it has agreed to halt strikes in the strait.
On 17 June, 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".
As part of the MoU, Iran had agreed to use its "best efforts for the safe passage of commercial vessels with no charge for 60 days".
But the ceasefire agreed less than two weeks ago has been under threat in recent days because of renewed attacks by both sides.
Strikes kicked off once more on Thursday after an Iranian projectile hit a cargo ship in the Strait of Hormuz.
Over the weekend, the US retaliated with a series of strikes on Iran, hitting multiple targets in what US Central Command (Centcom) called a direct response to the "continued aggression" against commercial shipping.
On Saturday, Iran responded with strikes on US bases in Kuwait and Bahrain. The US has said none of these attacks reached their targets, and there were no casualties or damage.
The Strait of Hormuz is a key waterway for oil and gas shipments, and was effectively closed by Tehran after the US and Israel launched attacks on Iran at the end of February.
On Friday, the US also mediated the signing of a framework agreement between Israel and Lebanon aimed at paving the way to a lasting peace.
Due to ongoing fighting between Israeli forces and the Iranian-backed Hezbollah in southern Lebanon, that ceasefire also looked shaky.
The leader of Lebanon's Hezbollah militant group has rejected the agreement and accused the Beirut government of undermining Lebanon's sovereignty.
On Sunday, two days after the agreement was signed, the Israeli army said it had struck a 200-metre-long tunnel used by Hezbollah in southern Lebanon, which it said contained hundreds of weapons.
The US was informed ahead of the attack, according to a statement from Israeli Prime Minister Benjamin Netanyahu and Defence Minister Israel Katz.
Tehran says hostilities in Lebanon must stop for a wider ceasefire deal to stick.
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Iran accuses the US of violating their deal and says it struck targets linked to American forces in response.
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