Israelis and Palestinians have rejoiced 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.

Egypt's state-affiliated Qahera TV reported the ceasefire had officially come into effect after noon in the region (8pm AEDT) on Thursday, when the enemies signed it in the Egyptian beach resort of Sharm el-Sheikh.

Israeli Prime Minister Benjamin Netanyahu's office said it would take effect only once ratified by the Israeli cabinet, which was scheduled to meet at 5pm.

Residents in Gaza reported air strikes on Gaza City about the time it was due to be signed.

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 w

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