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

Israelis and Palestinians alike rejoiced after the deal was announced, the biggest step yet to end two years of war in which over 67,000 Palestinians have been killed, and return the last hostages seized by Hamas in the deadly attacks that started it.

Officials on both sides confirmed they had signed the deal following indirect talks in the Egyptian beach resort of Sharm el-Sheikh.

Under the deal fighting will cease, Israel will partially withdraw from Gaza and Hamas will free all remaining hostages it captured in the attack that

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