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JERUSALEM/ISLAMABAD, April 16 (Reuters) – Optimism grew on Thursday that the Iran war may be near an end, with a key Pakistani mediator having made a breakthrough on “sticky issues”, a source said, although Iran warned the fate of its nuclear program had not been resolved.

The United States and Pakistan have been talking up the prospects for a deal in the more than six-week war, with U.S. President Donald ‌Trump saying the accord would open the crucial Strait of Hormuz, through which a fifth of the world’s oil and gas supply flows.

Closure of the strait has triggered the worst oil price shock in history and forced the International Monetary Fund to downgrade its outlook for the global economy, warning prolonged conflict could push the world to the brink of recession.

Pakistan’s army chief and a key figure in the mediation, Field Marshal Asim Munir, arrived in Tehran on Wednesday to try to prevent a renewal of the conflict after marathon talks held in Islamabad last weekend ended without a deal.

A senior Iranian official told Reuters on Thursday that the trip had led to greater hopes for a second round of talks and an extension of the two-week ceasefire, but said fundamental differences remain over its nuclear program.

Pakistan’s foreign ministry said on Thursday that both sides are willing to resume talks, though no ⁠date had yet been set.

LEBANON CEASEFIRE ON THE AGENDA

The issue of a ceasefire in Lebanon, where Israel has been waging a parallel campaign against Iran-backed militant group Hezbollah, would also be an essential component of any peace talks, Pakistan said.

Israel’s cabinet met on Wednesday to discuss a possible ceasefire in Lebanon, a senior Israeli official said, while Trump announced the leaders of the two countries would speak for the first time in decades.

Two senior Lebanese officials said they had been briefed that efforts were underway for a ceasefire but had no further details on how long it would last or when it would be announced.

“It has been a long time since the two leaders have spoken, like 34 years. It will happen tomorrow. Nice!” Trump wrote in a social media post published before midnight on Wednesday, Washington time.

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Israeli Prime Minister Benjamin Netanyahu will speak with Lebanese President Joseph Aoun, Gila Gamliel, a member of Israel’s security cabinet, told Israel’s Army Radio on Thursday.

A Lebanese official told Reuters that the Lebanese government had “no information” about any upcoming contact with Israel’s leadership.

In southern Lebanon fighting continued to rage on Thursday.

A senior Lebanese security official said an Israeli strike had severed the last bridge linking southern Lebanon to the rest of the country. One person was killed in an Israeli strike targeting a car on the road that links to Syria, the country’s state news agency said.

There was no immediate comment from the Israeli military on either strike.

Stock markets ‌have rallied strongly in ⁠recent days on expectations of a swift resolution to the fighting, with global equities vaulting past their previous all-time highs in Asian trading on Thursday. Indexes on Wall Street hit record highs on Wednesday as crude oil prices steadied.