Palestinians in Gaza City on Thursday. More than 67,000 Gazans have been killed in two years. Photograph: Ahmad Salem/Bloomberg

Israel has begun implementing a ceasefire deal in Gaza, after it reached an agreement with Hamas for the Palestinian militant group to release all the hostages it holds.

It is the first diplomatic breakthrough after months of failed attempts at stopping the two-year war, which has all but devastated Gaza, left tens of thousands dead and destabilised the Middle East.

The deal came after days of negotiations between the warring sides in the Egyptian resort of Sharm El-Sheikh, building on a proposal from US president Donald Trump.

Israel’s cabinet convened late Thursday to approve the agreement in advance of a formal hostage release.

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