In pictures: Palestinians and Israelis celebrate after news of ceasefire deal

Israel and Hamas are expected to sign the agreement at the Egyptian beach resort of Sharm el-Sheikh on Thursday.

Palestinians in the city of Khan Yunis celebrated in the street after the announcement of the ceasefire agreement in Gaza. Source: Anadolu, Getty / Abed Rahim Khatib

Israelis and Palestinians rejoiced on Thursday after a ceasefire and hostage deal were announced under the first phase of US President Donald Trump's initiative to end the war in Gaza.

Israel and Hamas were expected to sign the agreement at midday local time at the Egyptian beach resort of Sharm el-Sheikh where they negotiated the biggest step yet taken to end two years of devastating warfare.

Palestinians and the families of Israeli hostages broke into wild celebrations after news emerged of the pact.

In Gaza, where most of the more than 2 million people have been displaced by Israeli bombing, young men applauded in the devastated streets, even as Israeli strikes continued.

'All of the Gaza strip is happy'

"Thank God for the ceasefire, the end of bloodshed and killing," Abdul Majeed Abd Rabbo said in Khan Younis in southern Gaza.

Palestinians follow the news about the ceasefire agreement in Khan Yunis on Thursday. Source: Anadolu, Getty / Abdallah F.S. Alattar

"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."

Young Palestinian men celebrated in the street in Gaza after news of the peace deal. Source: Reuters

Einav Zaugauker, whose son Matan is one of the last hostages, rejoiced in Tel Aviv's so-called Hostages Square, where families of those seized in the Hamas attack that sparked the war two years ago have gathered to demand their return.

People gather at Hostage Square in Tel Aviv to celebrate the deal. Source: Getty, DPA / Ilia Yefimovich

"I can't breathe, I can't breathe, I can't explain what I'm feeling ... it's crazy," she said, speaking in the red glow of a celebratory flare.

As part of the deal, all hostages held by Hamas are to be released. Source: Getty, DPA / Ilia Yefimovich

"What do I say to him? What do I do? Hug and kiss him," she said.

"Just tell him that I love him, that's it. And to see his eyes sink into mine ... It's overwhelming — this is the relief."

A person wearing a mask resembling Donald Trump, who proposed the peace plan. Source: DPA, Getty / Ilia Yefimovich

Still, Gaza residents said Israeli strikes on three Gaza City suburbs continued overnight and in the morning hours of Thursday.

Lines of smoke rose over Shejaia, Tuffah and Zeitoun in the early hours of Thursday, though there were no immediate reports of casualties.

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.

Despite the agreement, Israeli airstrikes continued in Gaza. Source: Anadolu, Getty / Ali Jadallah

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.

Still yet to be hammered out are plans to govern Gaza after the war, and the ultimate fate of Hamas, which has rejected Israel's demands that it give up its weapons.

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