Hostages held in the Gaza Strip "are coming home," envoy Steve Witkoff has told crowds in Tel Aviv. Photo: AP PHOTO

The Gaza Strip ceasefire has held in its second day as tens of thousands of Palestinians returned to their neighbourhoods and Israelis cheered the expected release of remaining hostages.

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"Gaza is completely destroyed. I have no idea where we should live or where to go," said Mahmoud al-Shandoghli in Gaza City as bulldozers clawed through the wreckage of two years of war.

A boy climbed debris to raise the Palestinian flag.

Israelis applauded US President Donald Trump,

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