Israel and the Palestinian militant group Hamas signed an agreement on Thursday to cease fire and free Israeli hostages in exchange for Palestinian prisoners, in the first phase of U.S. President Donald Trump’s initiative to end the war in Gaza.

Officials on both sides confirmed they had signed the deal following indirect talks in the Egyptian beach resort of Sharm el-Sheikh. The deal’s announcement had been greeted with celebrations among Palestinians and Israelis alike.

Under the deal, the biggest step yet towards peace, 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.

Israeli Prime Minister Benjamin Netanyahu’s office said the ceasefire would take e

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