In a dramatic turn in the long and bitter conflict, Hamas has released all 20 remaining living Israeli hostages as part of a new ceasefire deal, and Israel has begun freeing nearly 2,000 Palestinian prisoners in exchange.

The release came under a U.S.-mediated agreement that aims to pause hostilities and open the door for broader diplomatic negotiations. The 20 hostages, held for more than two years, were handed over to Israeli authorities via the Red Cross, prompting emotional reunions across Israel. Meanwhile, Israel started transporting Palestinian detainees from its prisons toward Gaza and the West Bank, in keeping with the terms of the accord.

As the hostages returned home, President Donald Trump addressed Israel’s parliament, hailing the moment as the end of an “age of terror and death” and calling it a chance to transform battlefield gains into durable peace. He spoke of a new beginning for the region and urged all sides to commit to reconciliation and reconstruction.

In Israel’s capital, tens of thousands gathered at “Hostages Square”—a site long used to remember the captives—to welcome the returning prisoners. Scenes of tears, embraces, and public celebration spread across the country. Families of the deceased hostages await the return of remains, a sensitive and unresolved component of the agreement.

On the Palestinian side, released detainees were greeted in Gaza and parts of the West Bank. Some were sent to Egypt as a transit, while others were returned directly to their hometowns. Emotional crowds received the freed individuals amid chants and flags. For Palestinians, the release is both a powerful symbolic moment and a release from painful uncertainty.

The ceasefire arrangement includes multiple phases. In this first stage, the key elements enacted immediately were the full release of living Israeli hostages and the start of Israel’s prisoner releases. In subsequent phases, issues such as Israeli military withdrawal, humanitarian aid access, reconstruction of Gaza, and longer-term governance arrangements remain on the table for negotiation.

While the deal represents the most substantive breakthrough in the Gaza war in months, significant challenges lie ahead. Key questions remain over how to ensure the ceasefire holds, how to manage disarmament demands, and how to rebuild a conflict-ravaged Gaza. Trust is fragile after years of violence, and both sides will be closely watched by mediators and regional powers.

The success of this agreement hinges on mutual restraint, robust monitoring, and political will. If it endures, it may offer a rare opening for renewed diplomacy, reconstruction, and relief for millions who have endured the war’s devastation.