Putrajaya, Malaysia. Thailand and Cambodia have agreed to an “unconditional” ceasefire starting at midnight, Malaysian Prime Minister Anwar Ibrahim announced Monday, marking a major breakthrough after five days of deadly border clashes that have killed dozens and displaced more than 260,000 people.

Cambodian Prime Minister Hun Manet and Thai Acting Prime Minister Phumtham Wechayachai welcomed the outcome, shaking hands with Anwar at the end of a joint press conference in Malaysia.

The fighting erupted Thursday following a land mine explosion along the disputed border that injured five Thai soldiers. Both sides blamed each other for the clashes, which have left at least 35 people dead and forced mass evacuations on both sides of the border.

Anwar, who hosted the talks as this year’s chair of the Association of Southeast Asian Nations (ASEAN), said the two countries agreed to an “immediate and unconditional ceasefire” effective from midnight. He described the discussions as “frank” and said both sides committed to restoring peace and stability.

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

As part of the agreement, military commanders from both countries will meet Tuesday to ease tensions, and Cambodia will host a border committee meeting on Aug. 4. The foreign and defense ministers of Malaysia, Cambodia, and Thailand have also been tasked with developing a detailed mechanism to implement and monitor the ceasefire.

Hun Manet expressed hope that relations would soon normalize so that the estimated 300,000 evacuees could return home. “It is time to start rebuilding trust, confidence, and cooperation,” he said.

Phumtham called the outcome a reflection of “Thailand’s desire for a peaceful resolution.”

The talks followed pressure from U.S. President Donald Trump, who warned that ongoing hostilities could jeopardize trade deals with both countries. The joint statement noted the U.S. and China as co-organizers of the talks, with both ambassadors attending the two-hour meeting in Malaysia.

US Secretary of State Marco Rubio, who helped arrange the meeting, praised the ceasefire and said he and Trump were committed to ensuring it holds. White House press secretary Karoline Leavitt posted news of the agreement on X, writing: “President Trump made this happen. Give him the Nobel Peace Prize!”

After returning to Bangkok, Phumtham said Trump had called to congratulate him and pledged to move forward on U.S.-Thai trade talks.

The confrontation marks a rare instance of open military conflict between ASEAN members, a regional bloc known for promoting peaceful dialogue and economic cooperation. In recent days, both nations recalled their ambassadors and Thailand shut all border crossings with Cambodia, except those used by returning Cambodian migrant workers.

News of the ceasefire brought relief to displaced communities. In Surin, Thailand, women in an evacuation shelter cheered at the announcement.

“I’m happy and a bit relieved,” said Usa Dasri, a vendor and farmer. “We miss our home. I think of my rice fields and livestock. I also worry about our soldiers. I want them to be safe and sleep well tonight.”

Cambodian evacuees shared similar sentiments. Chhuot Nhav, 42, from Oddar Meanchey province, said she looked forward to returning home but would wait for proof the fighting had truly stopped.

“I’m happy because I can go home and take care of my pig, dog, chickens, and my kids can return to school,” she said from under makeshift tarps. “But I’ll wait until it really ends.”

Others, like farmer Kong Sin, said they would return home Tuesday if the ceasefire holds.

The 800-kilometer (500-mile) border between Thailand and Cambodia has long been disputed, but recent skirmishes had been limited—until May, when the fatal shooting of a Cambodian soldier reignited tensions and stirred domestic political unrest in Thailand.