Hamas and Israel have agreed to the first phase of Donald Trump’s peace plan.

The terror group has pledged to release all Israeli hostages and Israel will withdraw its troops to an “agreed-upon line”.

The US president hailed the “historic and unprecedented event” in a late-night announcement, adding that it was the first step towards peace in the Middle East.

Mr Trump could fly to the region as soon as Friday, his press secretary said.

News of an agreement drew celebratory gatherings from hostage families in Tel Aviv and cautious optimism from some in Gaza.

Hamas intends to release all 20 living hostages in a matter of days, while the Israeli military will begin a withdrawal from the majority of Gaza.

Uncertainty remains about some of the thornier aspects of Mr Trump’s proposal. These include whether and how Hamas will disarm, and who will govern Gaza.

However, both sides appear closer than they have been in several months to ending a war that has killed tens of thousands of Palestinians, destroyed most of Gaza and triggered other armed conflicts across the Middle East.

“The whole world has come together on this one, Israel, every country has come together,” Mr Trump told the Reuters news agency.

“This has been a fantastic day. This is a great day for the world. This is a wonderful day, a wonderful day for everybody.”

Sir Keir Starmer expressed “profound relief” and called on both sides to keep their promises.

He added: “This agreement must now be implemented in full, without delay, and accompanied by the immediate lifting of all restrictions on life-saving humanitarian aid to Gaza.”