A major breakthrough has been reached in the Middle East, with Israel and Hamas agreeing to a peace deal that will see the release of all remaining hostages and a partial withdrawal of Israeli troops from Gaza. The announcement was made by U.S. President Donald Trump, who described it as “a great day for Israel and for the world.”

According to Trump, both sides have signed off on the first phase of what he called “a strong, durable, and everlasting peace.” Under the terms of the initial stage, Israel will pull back its forces to an agreed-upon line, while Hamas will free the hostages it still holds. A U.S. official told Axios that the release of hostages is expected within 72 hours of the Israeli Cabinet’s approval of the deal, which could happen as early as Monday.

The agreement, negotiated over several days in Egypt, comes two years after Hamas’ deadly October 7 attack, which triggered Israel’s invasion of Gaza. The territory has since been devastated, with over 67,000 Palestinians reported killed by the Gaza Health Ministry. The discussions in Cairo involved Israeli and Hamas representatives, as well as mediators from Qatar, Egypt, Turkey, and the U.S. Trump’s envoys, businessman Steve Witkoff and former White House adviser Jared Kushner, arrived in Egypt on Wednesday morning to help finalize the accord.

Hamas confirmed that the war in Gaza is over and thanked Trump and the mediating countries for their efforts. In a statement, the group urged all parties, including the U.S. and the guarantor nations, to ensure that Israel fully complies with the agreed terms. Israeli Prime Minister Benjamin Netanyahu welcomed the outcome, calling it “a great day for Israel,” and said his Cabinet would meet Thursday to endorse the agreement and secure the release of the captives.

The deal follows the framework of Trump’s previously announced 20-point peace plan. While the initial focus is on the exchange of hostages and prisoners, other sensitive issues, including Hamas’ disarmament and Gaza’s future governance, will be addressed in later stages. Israel has agreed to release 250 Palestinians serving life sentences and 1,700 others detained in Gaza since the start of the war. Trump told Fox News that the 20 Israeli hostages still alive, along with the remains of 28 others, would “all be coming back” by Monday.

Negotiations had already prompted Israel to suspend its offensive on Gaza City and halt most airstrikes, following Trump’s request to allow space for talks. Still, both sides face complex challenges ahead in securing a long-term political and security framework for Gaza.

The dramatic final moments of the deal were captured on live television. During a White House event on Wednesday evening, Secretary of State Marco Rubio handed President Trump a note indicating that the agreement was nearly complete. Trump briefly paused the event, telling the audience he might need to leave soon. A photograph later showed that the note informed him a deal was close and that he should approve a Truth Social post to announce it first.

Trump confirmed afterward that he plans to visit Israel in the coming days, underscoring his personal involvement in what he hailed as a historic achievement.