WASHINGTON/CAIRO, Oct 9 (Reuters): Israel and Hamas said they had agreed to a long-awaited ceasefire and hostage deal, the first phase of U.S. President Donald Trump's plan to end a war in Gaza that has killed more than 67,000 people and reshaped the Middle East.

Just a day after the second anniversary of Hamas militants' cross-border attack that triggered Israel's devastating assault on Gaza, indirect talks in Egypt yielded an agreement on the initial stage of Trump’s 20-point framework to bring peace to the Palestinian enclave.

The accord, if fully implemented, would bring the two sides closer than any previous effort to halt a war that had evolved into a regional conflict, drawing in countries such as Iran, Yemen and Lebanon, deepened Israel's international isolation and reshaped the Middle East.

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 the bloodshed.

“Thank God for the ceasefire, the end of bloodshed and killing," said Abdul Majeed abd Rabbo, a man in the southern Gaza city of Khan Younis.

"I am not the only one happy, all of the Gaza Strip is happy, all the Arab people, all of the world is happy with the ceasefire and the end of bloodshed."

But the agreement announced by Trump late on Wednesday was short on detail and left many unresolved questions that could yet lead to its collapse, as has happened with previous peace efforts.

"I am very proud to announce that Israel and Hamas have both signed off on the first Phase of our Peace Plan," Trump said on Truth Social.

"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 added.

Successful completion of the deal would mark a significant foreign policy achievement for the Republican president, who had campaigned on bringing peace to major world conflicts but has struggled to swiftly deliver, both in Gaza and on Russia's invasion of Ukraine.

Israeli Prime Minister Benjamin Netanyahu said he would convene his government on Thursday to approve the agreement.

"With the approval of the first phase of the plan, all our hostages will be brought home," he said in a statement. "This is a diplomatic success and a national and moral victory for the State of Israel."

Hamas confirmed it had reached an agreement to end the war, saying the deal includes an Israeli withdrawal from the enclave and a hostage-prisoner exchange.

"We affirm that the sacrifices of our people will not be in vain, and that we will remain true to our pledge - never abandoning our people’s national rights until freedom, independence, and self-determination are achieved," Hamas said.

Gaza authorities say more than 67,000 people have been killed and much of the enclave has been flattened since Israel began its military response to the Hamas cross-border attack on October 7, 2023. Around 1,200 people were killed and 251 were taken hostage back to Gaza, according to Israeli officials, with 20 of the 48 hostages still held believed to be alive.

Despite the hopes raised for ending the war, crucial details are yet to be spelled out, including the timing, a post-war administration for the Gaza Strip and the fate of Hamas.

Photo from Reuters