Israel and Gaza-based militant group Hamas have agreed on the first phase of a peace deal, US president Donald Trump said late on Wednesday.
Under the deal, Israeli hostages will be released in the coming days, while Israel's military will withdraw "to an agreed upon line", Trump said.
The agreement was confirmed by Israeli prime minister Benjamin Netanyahu, who described it as a "great day" for the country. The deal still needs be approved by Israel's cabinet later today.
Hamas has also approved the deal, according to reports. The foreign ministry in Qatar, which has been co-ordinating negotiations between Israel and Hamas this week, said a deal was agreed by all parties on the first phase of a ceasefire agreement that would release Israeli hostages and Palestinian prisoners, allow aid into Gaza and lead to ending the war.
The full details of the agreement are still unclear. Trump unveiled his 20-point peace plan last week, proposing the establishment of a "Board of Peace" to oversee Gaza.
Oil prices fell after Trump's announcement, with the front-month December Brent crude contract on the Ice exchange falling by 1.1pc, before later recovering to $65.82/bl as of 03:10 GMT, which is lower by 43¢/bl from its settlement on 8 October.
Hamas' attack on Israel on 7 October 2023, and Israel's response, have added to political risk in the Middle East — prompting attacks on Red Sea shipping by the Houthi militant group in Yemen, and leading indirectly to a brief war between Israel and major oil producer Iran earlier this year.
