Cairo/UN/US: U.S. President Donald Trump announced on Wednesday that Israel and Hamas have agreed to the “first phase” of his peace plan, marking a major breakthrough in the two-year-long Gaza conflict.

“This means that ALL of the Hostages will be released very soon, and Israel will withdraw their Troops to an agreed upon line as the first steps toward a Strong, Durable, and Everlasting Peace,” Trump wrote on social media.

According to people familiar with the matter, Hamas will release all 20 living hostages this weekend, while the Israeli military begins its withdrawal from most parts of Gaza.

Netanyahu, Trump hail ‘historic achievement’

Israeli Prime Minister Benjamin Netanyahu said, “With God’s help we will bring them all home.”

He added that he would convene the government on Thursday to approve the agreement, calling it a “historic achievement.”

Netanyahu also spoke with President Trump in what his office described as a “warm and moving” conversation. The Israeli leader thanked Trump for his “efforts and global leadership,” while Trump praised Netanyahu’s “determined leadership and the actions he led.”

UN, Hamas and mediators welcome the deal

U.N. Secretary-General Antonio Guterres welcomed the agreement, urging all sides to “abide fully by the terms of the agreement.”

He said the U.N. stands ready to support its full implementation and to scale up humanitarian aid to Gaza.

“I urge all stakeholders to seize this momentous opportunity to establish a credible political path forward towards ending the occupation, recognising the right to self-determination of the Palestinian people, and achieving a two-state solution,” Guterres said.

Hamas said the deal ensures Israeli troop withdrawal, entry of aid, and the exchange of hostages and prisoners. The group called on Trump and mediators to ensure that Israel implements all provisions without delay.

Qatar’s Foreign Ministry spokesman Majed al-Ansari confirmed that both sides had agreed on all provisions and implementation mechanisms of the first phase of the Gaza ceasefire deal. “The agreement will lead to ending the war, the release of Israeli hostages and Palestinian prisoners, and the entry of aid,” he said.

Ceasefire signing expected in Egypt

A source told AFP that the first phase of the ceasefire deal will be formally signed on Thursday in Egypt around midday. Once the Israeli Cabinet approves the deal, forces will begin withdrawing to the agreed boundary within 24 hours, a senior White House official said.

Hamas will then have 72 hours to begin releasing hostages, expected to start on Monday.

Emotional reactions from Gaza

“It’s a huge day, huge joy,” said Ahmed Sheheiber, a displaced Palestinian man from northern Gaza. Crying over the phone from his shelter in Gaza City, he said he is waiting “impatiently” for the ceasefire to go into effect so he can return to his home in the Jabaliya refugee camp.

The Hostages Families Forum, representing relatives of captives, said it received the ceasefire news with “excitement, anticipation, and apprehension.” It urged the Israeli government to immediately approve the deal and praised Trump for his “commitment and determination that led to this historic breakthrough.”

Unresolved issues remain

Despite the progress, questions remain about Hamas’s possible demilitarisation and the future governance of Gaza. Israeli officials were reportedly opposed to including Marwan Barghouti, a prominent Palestinian prisoner serving multiple life sentences, fearing backlash from the far-right members of Netanyahu’s coalition.

Trump credited Jared Kushner and special envoy Steve Witkoff for helping finalise the first phase of the deal during talks in Egypt earlier on Wednesday.

UN chief Guterres reiterated that “all hostages must be released in a dignified manner,” and that a “permanent ceasefire must be secured” to ensure lasting peace.