Three Iranian officials indicated on Tuesday that Tehran may cancel its plans to attack Israel if the ceasefire and hostage release agreement is successful.
Israel has been bracing for an attack from Iran along with Hezbollah following the assassination of terror leaders.
The US has urged Iran not to attack and has sent warships to the Middle East to be ready to defend Israel if necessary.
There were reports that Iran may back off from its threats to retaliate severely against Israel for the assassination of Hamas leader Ismail Haniyeh in Tehran.
Israel has not claimed responsibility for the killing, but according to reports, Mossad arranged the assassination recruiting IRGC operatives to plant explosives.
US President Joe Biden expressed optimism on Tuesday that Iran may hold off attacking Israel if an agreement is reached to end the war in Gaza and release hostages.