U.S. and Iranian officials said they had reached a preliminary agreement to halt fighting and reopen shipping through the Strait of Hormuz, with both sides describing the arrangement as an initial pact and a formal signing expected later this week.

Reports said the framework would extend the ceasefire for 60 days and be followed by negotiations on Iran’s nuclear program. Reuters reported that issues related to Tehran’s nuclear activities were left for further talks, while draft terms described by officials before the announcement included the possible release of $25 billion in frozen Iranian assets and commitments related to nuclear weapons and highly enriched uranium.

Iran’s Supreme National Security Council said military operations on all fronts, including Lebanon, would end immediately and permanently, but other reports said it remained unclear whether Israel, which was not a party to the U.S.-Iran agreement, would continue its operations in Lebanon.

Financial markets reacted after the announcement, with oil prices falling by more than $4 a barrel and global share prices rising. Reports also said high oil and gasoline prices and broader energy supply disruptions were not expected to be resolved immediately despite the agreement and the planned reopening of the waterway.