There appears to be a tentative cease fire in Sadr City:

Under the terms of the agreement, Prime Minister Nuri Kamal al-Maliki’s government would gain control over Sadr City, now a largely lawless area, and in turn give members of Mr. Sadr’s militia who were not actively involved in the fighting a guarantee that they would not be arrested.

I’m not sure that Maliki will have any meaningful control thouhg, though rockets into the Green Zone are likely to decrease, but this was shaping up to be a disaster for Maliki as well as Sadr:

The Iraqi government has done little to ease the crisis and allow medical and other aid to reach people. There has been almost no effort to repair the shattered neighborhood, where burned-out cars and piles of bricks from bomb-damaged houses are common sights.

If this had gone to a full offensive, we would have seen massive artillery and air strikes, and the neither Iraqi government nor the US military had resources available to handle the 100 thousand or so refugees who would have been created, which would have been politically disasterous for Dawa and ISCI.

Note that once again Iran had to take the lead in mediating this. Our military presence bolsters Iran’s regional ambitions.