Hamas has freed the last living Israeli hostages from Gaza under a ceasefire deal and Israel sent home busloads of Palestinian detainees, as US President Donald Trump told Israel's parliament that peace had arrived in the Holy Land.
The Israeli military said it had received all 20 hostages confirmed to be alive, after their transfer from Gaza by the Red Cross.
The announcement prompted cheering, hugging and weeping among thousands waiting at "Hostage Square" in Tel Aviv.
In Gaza, thousands of relatives, many weeping with joy, gathered at a hospital where buses brought home some of the nearly 2,000 Palestinian prisoners and detainees to be freed by Israel as part of the accord.
"The skies are calm, the guns are silent, the sirens are still and the sun rises on a Holy Land that is finally at peace," Mr Trump told the Knesset, Israel's parliament, saying a "long nightmare" for both Israelis and Palestinians was over.
Our Deputy Foreign Editor Edmund Heaphy reports live from Tel Aviv
"Now it is time to translate these victories against terrorists on the battlefield into the ultimate prize of peace and prosperity for the entire Middle East," he said before departing for a summit in Egypt intended to cement the truce.
The US, along with Egypt, Qatar and Turkey, mediated what has been described as a first phase agreement between Israel and Hamas for a ceasefire and the release of hostages by Hamas and prisoners and detainees by Israel.
Mr Trump arrived in the Egyptian beach resort of Sharm el-Sheikh about an hour before sundown for the gathering of more than 20 world leaders, which he was to chair alongside President Abdel Fattah al-Sisi.
Large billboards showing a beaming Mr Trump and Mr Sisi with the words "welcome to the land of peace" lined the road from the airport to the conference centre.
At the opening of the summit, Mr Trump signed a document on the ceasefire deal with Egypt, Qatar and Turkey.
The Israeli hostages freed today were the last still alive in captivity from 251 seized in the Hamas-led attacks of 7 October 2023 that killed 1,200 people and triggered the war.
The ceasefire and partial Israeli withdrawal agreed last week halted one of Israel's biggest offensives of the war, an all-out assault on Gaza City that was killing scores of people per day.
Since then, huge numbers of Palestinians have been able to return to the ruins of homes in Gaza, swathes of which were reduced to a wasteland by Israeli bombardment that killed 68,000 people.
Formidable obstacles remain, even to securing an enduring ceasefire, much less to bringing a wider, more durable peace.
Among the immediate issues still to be resolved: recovering the remains of another 26 Israeli hostages believed to have died and two whose fates are unknown.
Hamas says recovering the bodies could take time as not all burial sites are known. It said today it would hand over four bodies. Israel's military confirmed it had received the first two, and an official said two more were handed over later.
Aid supplies must be rushed into the enclave, where hundreds of thousands of people face famine.
UN aid chief Tom Fletcher underlined the need to "get shelter and fuel to people who desperately need it and to massively scale up the food and medicine and other supplies going in".
Beyond that, crucial issues have yet to be resolved, including how to govern and police Gaza, and the ultimate future of Hamas, which still rejects Israel's demands to disarm.
Hamas gunmen, seeking to assert their presence, launched a security crackdown in Gaza City after Israel's pullback, killing 32 members of a rival group, a Palestinian security source said.
Mr Trump, speaking on his flight to the region, said Hamas had been given a temporary green light for fighters to keep order: "They do want to stop the problems, and they've been open about it, and we gave them approval for a period of time."
The Gaza war has also reshaped the Middle East through spillover conflicts, with Israel imposing punishing damage in a 12-day war against Iran and campaigns against Iran's regional allies, including Lebanon's Hezbollah and Yemen's Houthis.
Mr Trump, who has presented his plan to end the war in Gaza as the catalyst for a wide regional peace settlement, even floated the idea of a peace deal between arch Middle East enemies Iran and Israel, telling the Knesset he thought Iran wanted one: "Wouldn't it be nice?"
Beaming with relief and joy, two released hostages waved to cheering crowds from vans on the way to an Israeli hospital, one hoisting a large Israeli flag then forming a heart with his hands.
Video footage captured emotional scenes of families receiving phone messages from their loved ones as they were being released, their faces lighting up with disbelief and hope after months of anguish.
"I am so excited. I am full of happiness. It's hard to imagine how I feel this moment. I didn't sleep all night," said Viki Cohen, mother of hostage Nimrod Cohen, as she travelled to Reim, an Israeli military camp where hostages were being transferred.
Palestinians meanwhile rushed to embrace prisoners and detainees freed by Israel.
Several thousand gathered inside and around Nasser Hospital in Khan Younis in southern Gaza, some waving Palestinian flags, others holding photos of their relatives.
"I am happy for our sons who are being freed, but we are still in pain for all those who have been killed by the occupation, and all the destruction that happened to our Gaza," a Gaza woman, Um Ahmed, told Reuters in a tearful voice message.
Freed prisoners arrived in buses, some of them posing from the windows, flashing V-for-Victory signs.
The appearance of armed and masked Hamas fighters at the scene underscored the difficulty of resolving Israel's demand that they disarm.
Israel was due to release 1,700 detainees it captured in Gaza, as well as 250 prisoners from its jails convicted or suspected of security offences, including attacks on Israelis.
Samer Halabeya, a doctor freed from jail where he was serving a sentence for planning an attack that wounded an Israeli officer, stood by his weeping mother in Ramallah in the occupied West Bank.
"We hope that everyone gets freed," he said.
Read the latest stories on the ceasefire in Gaza
