Israelis and Palestinians rejoiced on Thursday after a ceasefire and hostage deal was announced under the first phase of US President Donald Trump’s initiative to end the war in Gaza.

The enemies both publicly endorsed the deal and had been expected to sign it around noon in the Egyptian beach resort of Sharm el-Sheikh (0900 GMT), though there was no immediate official confirmation that the signing had taken place.

Israeli Prime Minister Benjamin Netanyahu’s office said the ceasefire would take effect once ratified by the Israeli government, which would convene after a security cabinet meeting scheduled for 5pm.

Israel’s hostage coordinator Gal Hirsch said the list of the Palestinian prisoners to be freed was still being worked out.

Residents in Gaza reported a series of air strikes on Gaza City around the time it was due to be signed.

Ceasefire, withdrawal, and release of hostages

Under the deal, fighting will cease, Israel will partially withdraw from Gaza and Hamas will free hostages it captured in the attack that precipitated the war, in exchange for prisoners held by Israel.

A source briefed on details of the agreement said Israeli troops would begin pulling back within 24 hours of the deal being signed.

The release of all 20 Israeli hostages still believed to be alive in Gaza is expected on Sunday or Monday, an Israeli official said. Another 26 hostages have been declared dead in absentia and the fate of two is unknown. Hamas has indicated it may take time to recover bodies scattered across Gaza.

Palestinians and the families of Israeli hostages broke into wild celebrations after news emerged of the pact.

In Gaza, where most of the more than 2 million people have been displaced by Israeli bombing, young men applauded in the devastated streets, even as Israeli strikes continued.

‘All of the Gaza Strip is happy’

“Thank God for the ceasefire, the end of bloodshed and killing,” said Abdul Majeed Abd Rabbo in Khan Younis in southern Gaza. “I am not the only one happy, all of the Gaza Strip is happy, all the Arab people, all of the world is happy with the ceasefire and the end of bloodshed.”

Einav Zaugauker, whose son Matan is one of the last hostages, rejoiced in Tel Aviv’s so-called Hostages Square, where families of those seized in the Hamas attack that sparked the war two years ago have gathered to demand their return.

“I can’t breathe, I can’t breathe, I can’t explain what I’m feeling … it’s crazy,” she said, speaking in the red glow of a celebratory flare.

“What do I say to him? What do I do? Hug and kiss him,” she said. “Just tell him that I love him, that’s it. And to see his eyes sink into mine … It’s overwhelming — this is the relief.”

Still, Gaza residents said Israeli strikes on three Gaza City suburbs continued overnight and in the morning hours of Thursday, residents said, though there were no immediate reports of casualties.

The Gaza health ministry said at least nine Palestinians were killed by Israeli fire in the past 24 hours.

Just a day after the second anniversary of Hamas’ cross-border attack that triggered Israel’s devastating assault on Gaza, indirect talks in Egypt yielded the agreement as the initial stage of a 20-point framework put forward by Trump.

Major achievement for Trump

The agreement was widely portrayed as a major diplomatic achievement for the US president, who had campaigned on promises to end fighting in Gaza. He cast it as a first step in a plan to bring reconciliation to the wider Middle East.

“All Parties will be treated fairly! This is a GREAT Day for the Arab and Muslim World, Israel, all surrounding Nations, and the United States of America, and we thank the mediators from Qatar, Egypt, and Turkey, who worked with us to make this Historic and Unprecedented Event happen,” he wrote on social media. “BLESSED ARE THE PEACEMAKERS!”

But the agreement still left many unresolved questions. Yet to be hammered out are plans to govern Gaza after the war, and the ultimate fate of Hamas, which has rejected Israel’s demands that it give up its weapons.

Netanyahu called the deal “a diplomatic success and a national and moral victory for the State of Israel.”

But far-right members of his coalition have long opposed any deal with Hamas. One, Finance Minister Bezalel Smotrich, said Hamas must be destroyed once the hostages are returned. He would not vote in favour of a ceasefire deal, although he stopped short of threatening to bring down Netanyahu’s coalition.

The deal received a chorus of support from Arab and Western countries which had watched multiple ceasefire efforts fail.

The next phase of Trump’s plan calls for an international body led by Trump, and including former British Prime Minister Tony Blair, to play a role in Gaza’s post-war administration.

Arab countries which back the plan say it must lead to eventual independence for a Palestinian state, which Netanyahu says will never happen. Hamas rejects putting Gaza under international rule, and any role for Blair.

More than 67,000 Palestinians have been killed in Israel’s assault on Gaza, launched after Hamas-led members stormed through Israeli towns on October 7, 2023, killing 1,200 people and capturing 251 hostages.

In parallel, Israel’s military has waged campaigns that have tipped the balance of power in the Middle East in its favour, killing the leaders of Hezbollah in a campaign in Lebanon and top Iranian commanders in a 12-day war against Iran.

But global outrage has mounted against Israel’s assault, leaving it internationally isolated.