By Matt Spetalnick, Nidal al-Mughrabi and Alexander Cornwell
WASHINGTON/CAIRO (Reuters) -Israel and Hamas said they had agreed to a long-awaited ceasefire and hostage deal, the first phase of U.S. President Donald Trump's plan to end a war in Gaza that has killed more than 67,000 people and reshaped the Middle East.
Just a day after the second anniversary of Hamas militants' cross-border attack that triggered Israel's devastating assault on Gaza, indirect talks in Egypt yielded an agreement on the initial stage of Trump's 20-point framework to bring peace to the Palestinian enclave.
The accord, if fully implemented, would bring the two sides closer than any previous effort to halt a war that had evolved into a regional conflict, drawing in countries such as Iran, Yemen and Lebanon, deepened Israel's international isolation and reshaped the Middle East.
But the agreement announced by Trump late on Wednesday was short on detail and left many unresolved questions that could still lead to its collapse, as has happened with previous peace efforts.
"I am very proud to announce that Israel and Hamas have both signed off on the first Phase of our Peace Plan," Trump said on Truth Social.
"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 added.
Successful completion of the deal would mark a significant foreign policy achievement for the Republican president, who had campaigned on bringing peace to major world conflicts but has struggled to swiftly deliver, both in Gaza and on Russia's invasion of Ukraine.
Israeli Prime Minister Benjamin Netanyahu said he would convene his government on Thursday to approve the agreement.
"With the approval of the first phase of the plan, all our hostages will be brought home," he said in a statement. "This is a diplomatic success and a national and moral victory for the State of Israel."
Hamas confirmed it had reached an agreement to end the war, saying the deal includes an Israeli withdrawal from the enclave and a hostage-prisoner exchange.
"We affirm that the sacrifices of our people will not be in vain, and that we will remain true to our pledge - never abandoning our people's national rights until freedom, independence, and self-determination are achieved," Hamas said.
Gaza authorities say more than 67,000 people have been killed and much of the enclave has been flattened since Israel began its military response to the Hamas cross-border attack on October 7, 2023. Around 1,200 people were killed and 251 were taken hostage back to Gaza, according to Israeli officials, with 20 of the 48 hostages still held believed to be alive.
Despite the hopes raised for ending the war, crucial details are yet to be spelled out, including the timing, a post-war administration for the Gaza Strip and the fate of Hamas.
HOSTAGE RELEASE EXPECTED IN DAYS
Celebrations broke out in Gaza and in Israel after the announcement.
"Thank God for the ceasefire, the end of bloodshed and killing," said Abdul Majeed abd Rabbo, a man in the southern Gaza city of Khan Younis.
"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."
Families of Israelis held hostage in Gaza gathered in what has come to be known as Hostages Square in Tel Aviv after the announcement.
"President Trump, thank you very much. We thank him, our children will not have returned home without him," said Hatan Angrest, whose son Matan is among the hostages.
A Hamas source said the living hostages would be handed over within 72 hours of the Israeli government approving the deal. Hamas officials have insisted it will take longer to recover the bodies of dead hostages, believed to number about 28, from Gaza's rubble.
Trump told Fox News' 'Hannity' program on Wednesday that the hostages will probably be released on Monday.
The Israeli military warned residents in Gaza that some areas there are still dangerous combat zones. Forces continue to encircle Gaza City, and returning there remains "extremely dangerous," a military spokesperson said on Thursday in a statement following the ceasefire announcement.
Netanyahu and Trump spoke by phone and congratulated each other on an "historic achievement," and the Israeli prime minister invited the U.S president to address Israel's parliament, according to Netanyahu's office.
United Nations Secretary-General Antonio Guterres called for all sides to abide fully by the terms on the hostage agreement. "Immediate and unimpeded entry of humanitarian supplies and essential commercial materials into Gaza must be ensured. The suffering must end," he said in a statement.
Hamas said earlier on Wednesday it had handed over its lists of the hostages it held and the Palestinian prisoners held by Israel that it wanted to be exchanged.
Hamas has so far refused to discuss Israel's demand that Hamas give up its arms, which the Palestinian source said Hamas would reject as long as Israeli troops occupy Palestinian land.
ARAB COUNTRIES SAY PLAN MUST LEAD TO PALESTINIAN STATE
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.
There is no clear indication who will rule Gaza when the war ends. Netanyahu, Trump, Western and Arab states have ruled out a role for Hamas, which has run Gaza since driving out Palestinian rivals in 2007.
Hamas has said it would relinquish Gaza governance only to a Palestinian technocrat government supervised by the Palestinian Authority and backed by Arab and Muslim countries. It rejects any role for Blair or foreign rule of Gaza.
Global outrage has mounted against Israel's assault. Multiple rights experts, scholars and a U.N. inquiry say it amounts to genocide. Israel calls its actions self-defence after the 2023 Hamas attack.