Palestinian militant group Hamas on Monday handed over all 20 surviving hostages to Israel, which marks the initial phase of a ceasefire agreement that US President Donald Trump helped to broker, aimed at ending the conflict in Gaza.

The Israeli military said it had received the remaining 13 hostages after a first batch of seven arrived earlier on Monday, announcements that prompted cheering, hugging and weeping among thousands waiting at Hostage Square in Tel Aviv.

"This is a great day. This is a new beginning," Trump said after arriving to a hero's welcome in Israel where he was addressing the Knesset before flying on to Egypt for a summit aimed at building conditions for a lasting peace in Gaza. Asked if the two-year Gaza war was over, he said: "Yes."

Buses carrying freed Palestinian detainees as part of the ceasefire and hostage release deal also began moving towards the Palestinian enclave from Israeli prisons, footage on Israeli television showed. "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 the hostages were being transferred. 

The truce and the exchange of both hostages and prisoners follow two years of war that evolved into a regional conflict, drawing in countries such as Iran, Yemen and Lebanon, while deepening Israel's international isolation and reshaping the Middle East.

Under the agreement, Israel was set to release almost 2,000 Palestinian detainees and convicted prisoners from its jails later on Monday. Those 1,966 detainees boarded buses at Israeli prisons and most were expected to be released at Gaza's Nasser Hospital on Monday, an official involved in the operation said.

About a dozen masked gunmen dressed in black, apparently members of Hamas' armed wing, arrived at Nasser Hospital in southern Gaza, Reuters footage showed.

Leaders to meet in Egypt, much still unclear
In a statement issued on Monday, the armed wing of Hamas affirmed its commitment to the terms and timeline of the deal, contingent on Israel’s adherence. It claimed that Israel agreed to a ceasefire and swap deal after it failed to free the hostages through its military offensive.

The conflict was sparked by a Hamas attack on October 7, 2023, that killed around 1,200 people in Israel with 251 taken hostage. Israeli airstrikes and ground assaults have since devastated Gaza, killing more than 67,000 Palestinians, the enclave's health officials say.

Progress towards a lasting peace now hinges on global commitments that may be taken up by a summit later on Monday of more than 20 world leaders led by Trump in Egypt's Sharm el-Sheikh resort. Much could still go wrong. Further steps in Trump's 20-point plan have yet to be agreed. Those include how the demolished Gaza Strip will be governed once fighting ends, and the ultimate fate of Hamas, which has rejected Israel's demands it disarm.