Israel and Hamas have agreed to the first phase of a U.S.-backed ceasefire and hostage release plan aimed at ending the two-year war in Gaza. The deal, announced Wednesday after indirect talks in Egypt, could mark a major step toward halting a conflict that has destabilised the region and drawn in multiple countries.

The agreement includes a ceasefire, the release of hostages held by Hamas, and a partial Israeli troop withdrawal. Details remain limited, and past efforts have collapsed at this stage, but both sides have confirmed their commitment to this initial phase.

Hamas stated that the deal covers a full Israeli withdrawal from Gaza and a prisoner-hostage exchange. Israeli Prime Minister Benjamin Netanyahu said his government would meet Thursday to approve the plan.

Hostage releases could begin within days, with living captives expected to be freed first. Hamas said retrieving bodies from the rubble will take longer.

Negotiations involved U.S., Qatari, Egyptian, and Turkish mediators. A U.S. delegation, including senior envoys, helped push the deal forward. However, issues like post-war governance of Gaza, Hamas’s future, and full Israeli withdrawal terms are still unresolved.

Arab states supporting the plan say it must lead to an independent Palestinian state. Israel’s leadership continues to reject that possibility.

Meanwhile, fighting has slowed but not stopped. Gaza authorities report over 67,000 deaths since the war began, while Israel cites 1,200 killed and 251 hostages taken in the initial Hamas attack on Oct. 7, 2023.

International pressure has mounted for a ceasefire. The U.N. and human rights groups have condemned the scale of destruction, with calls for urgent humanitarian access and a permanent end to hostilities.