Israel, Hamas Agree to Ceasefire and Hostage Deal in Breakthrough Peace Effort

People celebrate after U.S. President Donald Trump announced that Israel and Hamas agreed on the first phase of a Gaza ceasefire, at the "Hostages square", in Tel Aviv, Israel, October 9, 2025. REUTERS/Ronen Zvulun

Israel and Hamas have agreed to a long-awaited ceasefire and hostage exchange, marking the first phase of U.S. President Donald Trump’s ambitious plan to end the devastating war in Gaza that has killed more than 67,000 people and reshaped regional dynamics across the Middle East.

The breakthrough, reached after indirect talks in Egypt, comes just a day after the second anniversary of Hamas’s cross-border attack on October 7, 2023, which triggered Israel’s massive military response. The accord forms the opening step of Trump’s 20-point framework aimed at achieving a lasting peace between Israel and the Palestinians.

Trump announced the agreement late Wednesday, hailing it as a major milestone. “Israel and Hamas have both signed off on the first phase of our Peace Plan,” he said on Truth Social.

“All hostages will be released very soon, and Israel will withdraw troops to an agreed line as the first steps toward a strong, durable, and everlasting peace.”

Celebrations erupted in both Israel and Gaza following the announcement. In Tel Aviv, families of hostages released fireworks at Hostages Square, while in Gaza, crowds cheered the news of a ceasefire after two years of relentless bombardment.

“Thank God for the end of bloodshed and killing,” said Abdul Majeed Abd Rabbo from Khan Younis. “All of Gaza, all Arab people, all the world are happy with this ceasefire.”

Israeli Prime Minister Benjamin Netanyahu said his government would meet Thursday to approve the deal. “With the approval of the first phase, all our hostages will be brought home,” he said, calling it a “national and moral victory for Israel.”

Hamas confirmed it had agreed to end the fighting, saying the deal includes an Israeli troop withdrawal and a prisoner-hostage exchange.

Gaza’s authorities say more than 67,000 people have been killed since the conflict began, and much of the enclave lies in ruins. Israel reports that 1,200 people were killed and 251 kidnapped in the 2023 attack, with 20 of the remaining 48 hostages believed to be alive.

A Hamas official told reporters that living hostages would be released within 72 hours of Israel’s formal approval, while the recovery of deceased hostages could take longer. Trump later told Fox News that he expected the hostages to be freed by Monday.

The Israeli military, meanwhile, warned that some areas of Gaza remain dangerous, even after the ceasefire announcement. “Forces continue to encircle Gaza City, and returning there remains extremely dangerous,” a military spokesperson said.

United Nations Secretary-General António Guterres welcomed the agreement, urging all parties to comply fully. “Immediate and unimpeded entry of humanitarian aid and essential goods into Gaza must be ensured. The suffering must end,” he said.

The next phase of Trump’s plan proposes an international administration for Gaza involving former British Prime Minister Tony Blair. However, Arab nations backing the deal insist that the process must lead to the creation of a Palestinian state — something Netanyahu firmly opposes.

Hamas, for its part, has rejected any foreign administration, saying it would only hand over control to a Palestinian technocratic government supported by Arab and Muslim countries.

Despite widespread optimism, analysts warn that many unresolved issues could derail the agreement, including Hamas’s future role and the governance of post-war Gaza.

“What we saw announced tonight is specific to the release of hostages and prisoners,” said Ahmed Fouad Alkhatib of the Atlantic Council. “The war is far from over, and what happens next remains uncertain.”

Oil prices fell following news of the truce, easing fears of supply disruptions. But while the ceasefire represents a rare moment of hope after years of war, much depends on whether both sides honor the fragile agreement and whether Trump’s broader peace plan can overcome the deep mistrust that has long defined the conflict.

Source: Reuters

Written By Rodney Mbua