HAMAS released all 20 remaining living hostages held in Gaza today, while Israel began releasing hundreds of Palestinian prisoners.

The exchanges are part of the ceasefire deal that many hope has brought to an end the fighting that has killed tens of thousands of Palestinians and all but demolished the territory.

The bodies of the remaining 28 dead hostages are also expected to be handed over as part of the deal, although the exact timing remains unclear.

The final 20 living hostages have been identified by the Israeli Prime Minister Benjamin Netanyahu’s office as David and Ariel Kunio, Avinan Or, Elkana Buhbot, Rom Breslavsky, David Avitar, Eitan Horn, Maxim Harkin, Nimrod Cohen, Segev Kalfon, Matan Tsengauker, Yosef-Chaim Ohana, Bar Kuperstein, Eitan Mor, Alon Ohel, Guy Gilboa-Dalal, Omri Miran, Matan Angrest and Ziv and Gali Berman.

In Tel Aviv, families and friends of the hostages who gathered in a square broke into wild cheers as Israeli television channels announced that the first group of hostages was in the hands of the Red Cross. 

Tens of thousands of Israelis watched the transfers at public screenings across the country.

Buses carrying dozens of freed Palestinian prisoners arrived in the West Bank city of Ramallah and in the Gaza Strip, as Israel began releasing more than 1,900 prisoners and detainees as part of the ceasefire deal.

Earlier, while Palestinians awaited the prisoner release an armoured vehicle flying an Israeli flag fired tear gas and rubber bullets at a crowd. 

This followed the circulation of a flier warning that anyone supporting what it called vterrorist organisations” risked arrest. Israel's military did not respond to questions about the flier.

Despite the ban, cheering crowds met the buses arriving in Ramallah from Ofer prison, in the Israel-occupied West Bank. At least one bus also crossed into the Gaza Strip, the Hamas-run Prisoners Office said.

Salem el-Eid, who was freed today from a life sentence, defied the interview ban and said: “I spent 21 years in jail, since 2004. The conditions were very harsh. The situation was very, very bad.

“Whenever there are deals or there is escalation, our treatment gets worse including beatings and abuse.”

At least 10,000 Palestinians remain in Israeli prisons, many for years without charges or trial.

British Prime Minister Sir Keir Starmer said: “I share the deep feeling of relief as Avinan Or and other hostages are released today. 

“Having met his family, I know that no-one can truly understand the torture and agony they suffered for two drawn-out years and my thoughts are with them. It is now crucial that we work together to implement President Trump’s peace plan for Gaza.

“Commitment to this plan from all parties will be essential to ending the war and building the foundations for a sustainable path to a long-term peace.”

Sir Keir added that Britain “will support the crucial next stage of talks to ensure the implementation of the peace plan.”

A statement from the Palestine Solidarity Campaign said: “Last Saturday over 600,000 people marched for Palestine in London. We demanded our government take action to pressure Israel to end its occupation of Palestinian land and apartheid rule over its people.” 

“Whether there’s a ceasefire or not we won’t stop until Palestine is free,” the statement added.

Ian Byrne, MP for Liverpool West Derby said: “It’s heartening to witness the scenes of joy as Israeli hostages are reunited with their loved ones. At the same time, as many Palestinians return to shattered homes and devastated communities, the urgent need for humanitarian aid, shelter, and rebuilding cannot be ignored.”

Mr Byrne called for an end to the Israeli occupation and for “those responsible for war crimes and atrocities must be held to account.”

The prisoner and hostage releases took place as Mr Trump told Israeli lawmakers that their country had no more to achieve on the battlefield and must work toward peace in the Middle East after two years of war against Hamas.

Israel has also carried out deadly attacks on Hezbollah in Lebanon, Iran, Syria, Yemen and Qatar during the last two years.

President Trump told the Knesset that: “Generations from now, this will be remembered as the moment that everything began to change.”

The right-wing president also called on Israeli President Israeli Isaac Herzog to pardon the Israeli Prime Minister, Mr Netanyahu, who is accused of corruption and who he described as “one of the greatest” wartime leaders. 

Mr Trump pressed Israel to look past the war, saying the country “has won all that they can by force of arms.”

“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.

President Trump promised to help rebuild Gaza, which has been devastated during the conflict, and urged Palestinians to “turn forever from the path of terror and violence.”

President Trump also said the US was ready to strike a deal with Iran as soon as Tehran is willing.

He said: “The hand of friendship and co-operation is open. It would be great if we could make a deal.”

President Trump was set to continue on to Sharm el-Sheikh in Egypt for a summit with more than two dozen other nations.

But Mr Netanyahu’s office said later that he would not be joining the summit because it was too close to the Jewish holiday of Simchat Torah.

Mr Netanyahu hailed President Trump as “the greatest friend Israel has ever had in the White House” and he promised to work with him going forward.

The truce in Gaza remains fragile and the sides have not agreed on Gaza’s post-war governance, the territory’s reconstruction and Israel’s demand that Hamas disarm. 

Negotiations over those issues could easily break down, and Israel has hinted it may resume military operations if its demands are not met.

Much of Gaza has been reduced to rubble and the territory’s roughly two million residents continue to struggle in desperate conditions. 

Under the deal, Israel agreed to reopen five border crossings to get desperately needed food and other supplies into Gaza, parts of which are experiencing famine.

The peace plan envisions an eventual role for the Palestinian Authority — something Mr Netanyahu has long opposed. 

The plan also calls for an Arab-led international security force in Gaza. It said Israeli forces would leave areas as those forces deploy. About 200 US troops are now in Israel to monitor the ceasefire.

The plan also mentions the possibility of a future Palestinian state, something Mr Netanyahu and his far-right coalition have always dismissed as a non-starter.