The United States and Iran agreed to halt retaliatory strikes and resume talks in the Qatari capital Doha on Tuesday to resolve their dispute over the Strait of Hormuz, after days of military escalation threatened to derail a fragile truce.The announcement came after several rounds of attacks around the Strait of Hormuz. The US launched strikes on Iranian military targets after accusing Tehran of violating the ceasefire by attacking commercial ships. Iran responded by launching ballistic missiles and drones at US military bases in Bahrain and Kuwait, while the two sides exchanged fresh warnings over further escalation.According to Axios, the two countries have now agreed to stop attacking each other and continue technical talks in Doha.“We have decided to cease all kinetic activities,” a senior US official told Axios, referring to the military strikes and other attacks.A second US official said both sides would stand still ‘for now’ and ‘ships can move freely’ while technical discussions continue. Both officials confirmed that talks were scheduled to take place in Doha on Tuesday.The renewed fighting arose from differing interpretations of the memorandum of understanding (MoU) signed earlier this month to end the conflict, particularly Article 5 relating to navigation through the Strait of Hormuz.Under the agreement, Iran committed to do its best to ensure the safe passage of commercial vessels through the strategic waterway, while the United States agreed to lift its blockade of Iranian ports.During talks in Switzerland last week, the US delegation, led by Vice President JD Vance, also agreed to establish a direct “hotline” between the US military and Iran’s Islamic Revolutionary Guard Corps (IRGC) to coordinate shipping traffic through the Strait of Hormuz. However, US officials said the communication channel was still not operational as Iran again insisted that the ships coordinate their passage with Tehran.Technical talks were originally scheduled to take place in Switzerland and focused on Iran’s nuclear program. However, recent tensions shifted both the venue and the agenda of resolving the Strait of Hormuz dispute to Doha.The development came as Iran announced it had canceled Sunday’s technical talks citing recent US attacks and Washington’s failure to meet the terms of the memorandum.Speaking to Iranian state television, Mehdi Fazeli, a member of the Office for the Preservation and Publication of the Works of Iran’s Supreme Leader, said that one of the reasons for suspending the talks was the lack of access to Iranian funds.“For example, one of the reasons is to check whether we have access to unfrozen funds, if there is no access then that condition is not met,” he said.