Optimism grew on Thursday that the war in the Middle East may be near an end, with a key Pakistani mediator in Tehran and the administration of President Donald Trump talking up hopes for a deal that would open the crucial Strait of Hormuz.

Israel’s cabinet met on Wednesday to discuss a possible ceasefire in neighboring Lebanon, a senior Israeli official said, more than six weeks ‌into its war with Iran-backed Hezbollah. Ending the fighting in Lebanon was a key sticking point in earlier peace talks, along with how to deal with Tehran’s nuclear ambitions.

U.S. and Iranian officials were weighing a return to Pakistan for further talks as early as the coming weekend. “We feel good about the prospects of a deal,” White House press secretary Karoline Leavitt said at a news conference on Wednesday, calling conversations mediated by Pakistan “productive and ongoing.”

She ⁠denied reports that the U.S. had formally requested an extension of a two-week ceasefire agreed by the two sides on April 8.

Stock markets have rallied strongly in recent days on expectations of a swift resolution to the fighting. Reuters