After a meeting extending late into Thursday night, the Israeli government approved a plan for a ceasefire in Gaza and the release of hostages.
"The government has just approved the framework for the release of all the hostages — both the living and the deceased," a statement Israeli Prime Minister Benjamin Netanyahu's office said.
Netanyahu called it "a great day for Israel."
The ceasefire is expected to come into effect immediately. The initial phase of the plan involves the release of all 20 living hostages, and the remains of 28 others believed to be dead.
In exchange, Israel has agreed to release about 2,000 Palestinian prisoners and the retreat of Israeli troops from about half of Gaza. The agreement was achieved through indirect talks in Egypt, based on a 20-point framework offered by US President Donald Trump.
Once the exchange of hostages and prisoners is complete, a second phase would see aid begin flowing back into Gaza, which will then be governed by a transitional committee responsible for the day-to-day running of public services.
The deal also has the support of many Western and Arab countries, which will discuss an international peacekeeping force and reconstruction assistance for Gaza.
The international community has expressed hope for peace and urged Israel and Hamas to fulfill their commitments after the two parties agreed to the "first phase" of a deal signaling a breakthrough in the two-year conflict in Gaza.
Hamas also confirmed the accord, but called on Trump and the guarantor states to ensure that Israel fully implements the ceasefire.
Palestinian President Mahmoud Abbas, in a statement published by the Wafa news agency on Thursday, praised all mediators and stressed the need for all parties to commit to the immediate implementation of the agreement and reiterated that sovereignty over the Gaza Strip belongs to the State of Palestine.
Abbas reiterated that the connection between the West Bank and the Gaza Strip must be achieved through unified Palestinian government institutions, including an administrative committee and Palestinian security forces, within the framework of a single system and law, and with Arab and international support.
The war between Israel and Hamas broke out on Oct 7, 2023, when Hamas militants stormed into southern Israel, killing 1,200 people and capturing 251 hostages. In response, Israel invaded Gaza to force a return of the hostages and wipe out Hamas. During that time, about 67,000 Palestinians have been killed, the Gaza Health Ministry said.
While the mediators had widely been praised, Mustafa Barghouti, founder of the Palestinian National Initiative, said that the primary credit for halting the war in Gaza and "ethnic cleansing of its people" goes to the heroism, steadfastness and bravery of the Palestinian people.
Barghouti also said that caution must be maintained against the schemes of Netanyahu and his government, and that efforts should "focus on supporting the resilience of our people in the Gaza Strip", rebuilding what has been destroyed there, and confronting the colonial settlement onslaught in the West Bank and Jerusalem.
Chinese Foreign Ministry spokesman Guo Jiakun said at a regular news briefing on Thursday that China hopes a full and permanent ceasefire in Gaza will be realized as early as possible, that the humanitarian crisis will be effectively eased, and that tensions in the region will be diffused.
"We stand ready to work with the international community to make unremitting effort toward an early, full, just and lasting solution to the Palestinian question and a peaceful and stable Middle East," Guo said.
News of the deal prompted celebrations in Israel, Gaza and beyond, with Israeli families of hostages setting off fireworks, while Palestinians clapped and cheered in hopes of an end to their suffering.
UN Secretary-General Antonio Guterres commended the diplomatic efforts.
"I urge all stakeholders to seize this momentous opportunity to establish a credible political path forward toward ending the occupation, recognizing the right to self-determination of the Palestinian people and achieving a two-state solution that enables Israelis and Palestinians to live in peace and security," he said in a statement on Thursday.
Qatar said the deal was the "first phase of the Gaza ceasefire agreement, which will lead to ending the war, the release of Israeli hostages and Palestinian prisoners, and the entry of aid".
In a televised speech on Wednesday, Egyptian President Abdel-Fattah al-Sisi said that the talks in Sharm el-Sheikh were "progressing positively", Xinhua News Agency reported.
British Prime Minister Keir Starmer welcomed the agreement and said the agreement must now be implemented "in full, without delay, and accompanied by the immediate lifting of all restrictions on lifesaving humanitarian aid to Gaza".
Indian Prime Minister Narendra Modi said New Delhi welcomed the agreement on the first phase of Trump's peace plan and hopes the release of hostages and enhanced humanitarian assistance to the people of Gaza "will bring respite to them and pave the way for lasting peace".
Russian Foreign Minister Sergey Lavrov, in an interview published on Wednesday, said Trump's plan may be general in approach, but remains the best proposal "on the table" for now.
While the agreement is being described as a breakthrough, it was short on detail and left many unresolved questions that some thought could yet lead to its collapse, as has happened with previous peace efforts.
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