The international community has expressed hope for peace and urged Israel and Hamas to fulfill their commitments after the two parties agreed to the "first phase" of a deal signaling a breakthrough in the two-year conflict in Gaza.

The initial phase of the plan involves the release of all 20 living Israeli hostages remaining in Gaza in the coming days, the release of nearly 2,000 Palestinian prisoners and the retreat of Israeli troops from the majority of Gaza. It was yielded from indirect talks in Egypt, based on a 20-point framework offered by United States President Donald Trump.

"This means that all of the hostages will be released very soon, and Israel will withdraw their troops to an agreed-upon line as the first steps toward a strong, durable, and everlasting peace," Trump wrote on social media platform Truth Social on Wednesday, first announcing the deal.

Israeli Prime Minister Benjamin Netanyahu said he would convene his government later on Thursday to approve the agreement, adding in a statement that it was "a great day for Israel".

Hamas also confirmed the accord, but called on Trump and the guarantor states to ensure that Israel fully implements the ceasefire.

Palestinian President Mahmoud Abbas, in a statement published by the Wafa news agency on Thursday, praised all mediators and stressed the need for all parties to commit to the immediate implementation of the agreement and reiterated that sovereignty over the Gaza Strip belongs to the State of Palestine.

Abbas reiterated that the connection between the West Bank and the Gaza Strip must be achieved through unified Palestinian government institutions, including an administrative committee and Palestinian security forces, within the framework of a single system and law, and with Arab and international support.

While the mediators had widely been praised, Mustafa Barghouti, founder of the Palestinian National Initiative, said that the primary credit for halting the war in Gaza and "ethnic cleansing of its people" goes to the heroism, steadfastness and bravery of the Palestinian people.

Barghouti also said that caution must be maintained against the schemes of Netanyahu and his government, and that efforts should "focus on supporting the resilience of our people in the Gaza Strip", rebuilding what has been destroyed there, and confronting the colonial settlement onslaught in the West Bank and Jerusalem.

A similar view was echoed by the Palestinian Islamic Jihad. The second-largest armed group in Gaza said that the ceasefire agreement and prisoner exchange are not a "gift from anyone" and cited the sacrifices of the Palestinian people, although the group noted international efforts in securing the deal.

News of the deal prompted celebrations in Israel, Gaza, and beyond, with Israeli families of hostages letting off fireworks, while Palestinians clapped and cheered in hopes of an end to their sufferings, though many are in doubt of Israeli commitments.

UN Secretary-General Antonio Guterres commended the diplomatic efforts. "I urge all stakeholders to seize this momentous opportunity to establish a credible political path forward toward ending the occupation, recognizing the right to self-determination of the Palestinian people and achieving a two-state solution that enables Israelis and Palestinians to live in peace and security," he said in a statement on Thursday.

Qatar said the deal was the "first phase of the Gaza ceasefire agreement, which will lead to ending the war, the release of Israeli hostages and Palestinian prisoners, and the entry of aid".

In a televised speech on Wednesday, Egyptian President Abdel-Fattah al-Sisi said that the talks in Sharm el-Sheikh were "progressing positively", Xinhua News Agency reported.

British Prime Minister Keir Starmer welcomed the agreement and said the agreement must now be implemented "in full, without delay, and accompanied by the immediate lifting of all restrictions on lifesaving humanitarian aid to Gaza".