Thailand and Cambodia agreed Monday to an unconditional ceasefire during a meeting in Malaysia, in a significant breakthrough to resolve five days of deadly border clashes that have killed dozens and displaced tens of thousands.

Cambodian Prime Minister Hun Manet and Thai Acting Prime Minister Phumtham Wechayachai agreed to a halt in fighting, starting at midnight, while appearing with Malaysian Prime Minister Anwar Ibrahim during a meeting held under U.S. pressure in the Malaysian administrative capital of Putrajaya. The Cambodian and Thai leaders hailed the meeting’s outcome and shook hands at the end of a brief news conference.

An Associated Press journalist in Cambodia reporting from close to the border with Thailand where artillery duels had been taking place said the sounds of shelling stopped about 10 minutes before the ceasefire came into effect. Reports from other fronts in the fighting were not immediately available.

The fighting began Thursday after a land mine explosion along the border wounded five Thai soldiers. Both sides blamed each other for starting the clashes, that have killed at least 35 people and displaced more than 260,000 people on both sides.

Anwar, who hosted the talks as annual chair of the Association of Southeast Asian Nations regional bloc, said both sides have reached a common understanding to take steps to return to normalcy following what he called frank discussions.

“This is a vital first step towards de-escalation and the restoration of peace and security,” Anwar said.

The Malaysian meeting followed direct pressure from U.S. President Donald Trump, who warned that the U.S. might not proceed with trade deals with either country if hostilities continue, giving both sides a face-saving justification for backing away from the fighting. In a statement later Monday on social media, Trump said the two sides had “reached a CEASEFIRE and PEACE... I am proud to be the President of PEACE!”

As part of the ceasefire deal, military commanders from both sides will hold talks Tuesday to defuse tensions while Cambodia will host a border committee meeting on Aug. 4. Anwar said. The foreign and defense ministers of Malaysia, Cambodia and Thailand have also been instructed to “develop a detailed mechanism” to implement and monitor the ceasefire to ensure sustained peace, he added.

Hun Manet said he hoped that bilateral ties could return to normal soon so that almost 300,000 villagers evacuated on both sides could return home.

It is “time to start rebuilding trust, confidence and cooperation going forward between Thailand and Cambodia,” he said.

Phumtham said the outcome reflected “Thailand’s desire for a peaceful resolution.”

The joint statement on the agreement said that the United States was a co-organizer of the talks, with participation from China. The Chinese and American ambassadors to Malaysia attended the meeting that lasted over two hours.

White House press secretary Karoline Leavitt posted news of the ceasefire on X and wrote: “President Trump made this happen. Give him the Nobel Peace Prize!”

Phumtham said after his return to Bangkok that Trump had called to offer congratulations for making a move toward peace. He also said Trump told him that Thailand’s talks with Washington to set tariff levels on Thai exports could now proceed and that he would seek to make them as favorable as possible.

A summary of the call from Phumtham’s office said the prime minister thanked the preisdent for his “important role” in seeking to resolve the crisis and declared that Trump would be honored and remembered in Thailand for his effort.

The violence of recent days marked a rare instance of open military confrontation between ASEAN member states, a 10-nation regional bloc that has prided itself on non-aggression, peaceful dialogue and economic cooperation. Both countries recalled their ambassadors and Thailand shut all border crossings with Cambodia, with an exception for migrant Cambodian workers returning home.