The fragile ceasefire between Israel and Iran appears to be holding after a rocky start, giving rise to cautious hope it could lead to a longer term peace agreement even as Tehran insisted it would not give up its nuclear program.

Israel has agreed to U.S. President Donald Trump's proposal for a ceasefire with Iran after it achieved its goal of removing Tehran's nuclear and ballistic missile threat, Prime Minister Benjamin Netanyahu's office said in a statement on Tuesday.

The president announced a truce and Israel later said its airports were returning to full activity and it was lifting restrictions on civilian movements.