A ceasefire between Israel and militants in Gaza took hold on Sunday and despite Palestinian rocket attacks in the first hours, Israel promised restraint.
Israeli Prime Minister Ehud Olmert said the deal could help revive peacemaking that collapsed six years ago before a Palestinian uprising began.
Palestinian President Mahmoud Abbas instructed security chiefs to ensure the truce held.
The immediate aim is to end rocket fire from Gaza and halt a crushing Israeli army offensive launched after gunmen seized a soldier in a cross-border raid last June.
Olmert said he hoped the soldier would now be freed.
'All of these things ultimately could lead to one thing -- the opening of serious, real, open and direct negotiations between us,' Olmert said.
'So that we can move forward towards a comprehensive agreement between us and the Palestinians.'
Militants launched at least 9 rockets just hours after the start of the ceasefire at 4am.
But the army said it had not recorded any rocket fire since 8.15am.
'We will show the necessary restraint and patience, certainly in the coming days,' Olmert said in southern Israel.
The Israeli army pulled forces out of Gaza overnight and Palestinian witnesses confirmed the soldiers had gone.
