Thailand and Cambodia agree 'immediate and unconditional' ceasefire after talks

Thailand and Cambodia have agreed to an "immediate and unconditional" ceasefire after talks in Malaysia that aimed to halt the worst fighting between the neighboring countries in more than a decade.

- Rebecca Ratcliffe

At least 38 people have been killed and more than 300,000 displaced by fighting that erupted on the countries' shared border on Thursday.

The Malaysian prime minister, Anwar Ibrahim, who hosted the leaders from both countries, said the two sides had reached a "common understanding". He said it was "a vital first step towards de-escalation and the restoration of peace and security".

The negotiations took place less than 48 hours after Donald Trump announced he had called the two countries' leaders, warning that trade negotiations would be paused until the fighting stopped. Thailand and Cambodia face the prospect of a 36% US tariff from 1 August. Trump yesterday took credit for the ceasefire deal, to come into effect at midnight local time, after five days of clashes.

The talks were attended by officials from the US and China. Malaysia is the current chair of the Association of Southeast Asian Nations bloc.

The Cambodian prime minister, Hun Manet, told the media he hoped and "confidently" believed that the outcome of the meeting would "provide a lot of opportunities" for hundreds of thousands of people to return to their homes, for the two countries to stop fighting and to rebuild trust and cooperation.