Israel and Lebanon-based Hezbollah militants began a ceasefire Wednesday in a major step toward ending nearly 14 months of fighting as a region on edge wondered whether it will hold.

The agreement with Lebanon will maintain Israel's freedom of operation there to act in defence to remove threats posed by Hezbollah and enable displaced residents to return safely to their homes in northern Israel, Israeli government spokesperson David Mencer told Reuters.

A ceasefire between Israel and Hezbollah has come into effect in Lebanon after more than a year of fighting. It began at 04:00 local time (02:00 GMT) on Wednesday, putting an at-least temporary end to nearly 14 months of conflict between Israel and the Iran-backed militant group.