Israel declared a ceasefire and began pulling back its troops in Gaza on Friday, as thousands of displaced Palestinians started trekking back to their ruined homes after two years of war.

The truce, pushed by US President Donald Trump, raised hopes among families of Israel’s remaining hostages that the guns would finally fall silent.

The Israeli army said its forces stopped firing at noon (0900 GMT) “in preparation for the ceasefire agreement and the return of hostages.” Three hours later, the Pentagon confirmed Israel had completed the first stage of its withdrawal, though Israeli forces still hold around 53% of Gaza.

The pullback triggered a 72-hour countdown for Hamas to release the remaining hostages held in the enclave. Israel, meanwhile, published a list of 250 Palestinian prisoners and 1,700 Gazans it plans to free as part of the exchange.

As calm returned, long lines of Palestinians — exhausted by bombardment and what the U.N. had warned were famine conditions — began walking north from Khan Yunis toward their shattered homes.

The European Union mission at Rafah will reopen a pedestrian crossing with Egypt on October 14, Italy said.

Under the deal, Hamas will hand over 47 hostages, both living and dead, from the 251 seized in its October 7, 2023 attack. The remains of one hostage held since 2014 are also to be returned.

Gaza’s civil defence agency said Israeli troops and armoured vehicles were retreating from positions in Gaza City and Khan Yunis. Israel cautioned that some areas remained off-limits while its forces “adjust operational positions.”

“We’re going back to our areas, full of wounds and sorrow, but we thank God for this situation,” said Ameer Abu Lyadeh, 32, in Khan Yunis.

Before dawn, Prime Minister Benjamin Netanyahu said his government had approved the framework for the hostage-release deal.

“Two years ago, the Simhat Torah holiday became a day of national mourning,” Netanyahu said. “This Simhat Torah, with God’s help, will be a day of national joy, celebrating the return of our brothers and sisters held hostage.”

Despite celebrations in both Israel and Gaza, major issues remain unresolved — including Hamas’s disarmament and Trump’s proposed transitional authority for Gaza. Senior Hamas official Osama Hamdan told Al Araby TV the group rejects the idea.

Trump said Hamas’s surrender of its weapons would be addressed in the second phase of his peace plan.

Gaza civil defence official Mohammed al-Mughayyir said Israeli forces had withdrawn from Tel al-Hawa and Al-Shati camps in Gaza City, and parts of Khan Yunis.

“I’m happy about the truce and peace, even though I lost a son and daughter,” said Areej Abu Saadaeh, 53, walking home amid rubble and dust. “The truce also brings joy — we are returning to our homes.”

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