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The fighting began Thursday after a 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.

Hun Manet and Phumtham have agreed to an “immediate and unconditional ceasefire� with effect from midnight local time, Anwar said as he read out a joint statement.

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.

As part of the ceasefire deal, military commanders from both sides will begin to hold talks Tuesday to defuse tensions while Cambodia will host a border committee meeting on Aug. 4. he 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 some 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 Malaysian meeting followed direct pressure from U.S. President Donald Trump, who has warned that the United States may not proceed with trade deals with either country if hostilities continue. The joint statement said that the U.S. is 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!�

The violence marks 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 and Thailand shut all border crossings with Cambodia, with an exception for migrant Cambodian workers returning home.

News of the ceasefire brought relief and hope to evacuees from both sides. Some women at a crowded evacuation shelter in Surin, Thailand, shouted for joy.

“I’m happy about that, and feeling a bit relieved,� said Usa Dasri, a vendor and farmer. “We miss our home. There are many small things I’m worried about, livestock and rice fields. I don’t know what might’ve happened to them. I want to go home, so I’m happy. I also think about our soldiers at the frontline. I want them to be safe and have a good sleep like us.�

She also credited outside diplomacy for the breakthrough.

“Without them, our two countries would have had a hard time negotiating — both sides have quite a hard time talking and understanding each other,� she added.

Cambodian evacuees echoed the sentiment.

Chhuot Nhav, 42, who fled her home in Oddar Meanchey province, a frontline for the fighting, said she was happy but also wary.

“I am happy because I can go home and take care of my pig, dog, chickens and my kids can now go back to school,� said Chhuot Nhav, from under a series of green tarps that stretched out to the length of a school bus. But she said she will “wait until the fighting really stops� before heading back.

Another farmer Kong Sin, however said he would head back home Tuesday if the ceasefire took place as agreed.

The 800-kilometer (500-mile) frontier between Thailand and Cambodia has been disputed for decades, but past confrontations have been limited and brief. The latest tensions erupted in May when a Cambodian soldier was killed in a confrontation that created a diplomatic rift and .

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Jintamas reported from Surin, Thailand, and Sopheng Cheang from Samrong, Cambodia. Associated Press writers Chalida Ekvitthayavechnukul and Grant Peck in Bangkok contributed to this report.