This has happened

Both parties have approved a"first phase" of the peace plan, according to US President Donald Trump.

According to him, it means that all remaining hostages should be released and that Israel should withdraw its troops to an agreed line.

2,000 Palestinian prisoners in Israel will be released in exchange, AFP reports.

The peace talks have been held in Sharm el-Sheikh, Egypt. Mediating country Qatar says the details of the agreement will be announced at a later date.

The agreement was signed in Egypt at 11 a.m. Swedish time on Thursday.

It was on Thursday night that US President Donald Trump announced that both parties has approved a “first phase” of the peace plan .

“This means that ALL hostages will be released very soon, and that Israel will withdraw its troops to an agreed line as a first step towards a strong, sustainable and lasting peace. All parties will be treated fairly”, he wrote in a post on Truth Social.

20 of the total of 48 remaining hostages in Gaza has previously been reported to be alive by Israel.

The Israeli government will meet at 4 p.m. on Thursday to discuss how the release of the Israeli hostage will proceed. According to Times of Israel The country's security council will meet an hour before to discuss details and vote on a ceasefire.

In exchange, Israel will release 2,000 Palestinian prisoners, according to AFP.

The exchange must take place within 72 hours of the agreement being implemented.

Signed at lunch

The peace talks have been held in Sharm el-Sheikh, Egypt, where indirect talks between the parties have been ongoing in recent days. Representatives from Turkey, Qatar and Egypt have also participated.

The peace agreement was signed at 11 a.m. on Thursday, according to Egyptian media.

Shortly afterwards, shots were heard in the background during Al Jazeera s broadcast from inside Gaza – to celebrate the peace agreement.

“There is an indisputable collective sense of relief,” writes reporter Tareq Abu Azzoum on the ground in Gaza.

It was also celebrated in Israel. People gathered at Hostage Square in Tel Aviv and waved both American and Israeli flags.

Hamas: Multiple attacks

Just hours after the announcement that the parties had reached an agreement, several attacks were launched against Gaza, according to the Hamas-controlled Civil Defense. The attacks were said to be mainly directed at the northern parts of Gaza.

According to the advance notice, a ceasefire would come into effect in the Gaza Strip as soon as the document was signed at 11 a.m.

But at the same time, Israeli Prime Minister Benjamin Netanyahu's spokespeople told media in Jerusalem that the agreement would only come into effect after the Israeli government votes on the matter later on Thursday, writes TT.

Shortly afterwards, the exact opposite message came from the country's Deputy Secretary of State Sharren Haskel, who told Bloomberg that the ceasefire has already taken effect.

The Israel Defense Forces (IDF) announced earlier in the day that it is preparing to partially withdraw troops from the Gaza Strip. The soldiers will be moved to “adjusted deployment lines” in the “near future,” the IDF said in a statement, according to Times of Israel.

"The IDF will continue to be in the area and is preparing for any possible operational development," The IDF further writes.

Netanyahu: National and moral victory

Israeli Prime Minister Benjamin Netanyahu calls the agreement a “national and moral victory for the State of Israel,” in a post on X:

“Through steadfast determination, powerful military action, and the great efforts of our great friend and ally, President Trump, we have reached this crucial turning point.”

But how the conflict will be resolved in the long term is unclear.

It is not known whether Israel and Hamas have made any progress regarding how the area will be governed in the future and whether Hamas should be disarmed, which Trump has previously demanded.

Kristersson: Welcome

"Welcome announcement," writes Swedish Prime Minister Ulf Kristersson (M) in a post on X.

"The agreement must be followed by full humanitarian support to Gaza, lead to a permanent ceasefire and full implementation of the plan, paving the way for a two-state solution to the conflict. Sweden is ready to contribute to that process," he writes further.