Netanyahu credited “military and diplomatic pressure” with compelling Hamas to agree to release the captives in a televised statement on Saturday night local time (Sunday morning AEST).

“I hope that in the coming days we will be able to bring back all our hostages… during the Sukkot holidays,” Netanyahu said, referring to the Jewish festival that begins on Monday and runs for one week.

Negotiations to take place in Cairo

On Friday night, Hamas announced “its approval for the release of all hostages — living and remains — according to the exchange formula included in President Trump’s proposal”.

As of Saturday evening, a crowd of thousands was gathering in Tel Aviv urging Trump to ensure a deal was struck.

Dozens killed in Gaza despite Trump’s order

“The Israeli bombardment on Gaza continues with the same intensity and pattern — air strikes, artillery shelling and quadcopter drone fire are ongoing,” said Mohammed al-Mughayyir, also of the civil defence agency.

Donald Trump and Benjamin Netanyahu met at the White House last week and announced a 20-point US peace plan for Gaza. Source: Getty / Win McNamee

Mahmud Al-Ghazi, 39, a resident of Al-Rimal neighbourhood in Gaza City, said “Israel has actually escalated its attacks” since Trump’s call for a pause.

Israeli media reported that the military had shifted to a defensive posture in Gaza following Trump’s call, though the military did not confirm this.

No role for Hamas

Under it, administration of the territory would be taken up by a technocratic body overseen by a post-war transitional authority headed by Trump himself.

Reactions in Gaza

A journalist in the coastal area of Al-Mawasi with the Agence France-Presse news agency reported hearing celebratory cries of “Allahu akbar!” (God is greatest) from tents housing Palestinians as news of Hamas’ statement spread.