The Israeli army began withdrawing its troops from Gaza on Friday under the first phase of a U.S.-brokered cease-fire agreement, marking what could be the most significant step toward ending the two-year war that has devastated the enclave and isolated Israel on the global stage.

According to Israeli media, forces are retreating eastward from Rafah, Khan Younis and parts of northern Gaza toward positions along the so-called "yellow line,” as laid out in U.S. President Donald Trump’s 20-point peace initiative. The pullout is expected to be completed within 24 hours.

Israel’s government ratified the cease-fire with Hamas early Friday, setting in motion a 72-hour window to release Israeli hostages in exchange for Palestinian prisoners, while suspending active combat across the Strip.

"The government has just approved the framework for the release of all hostages – the living and the deceased,” Israeli Prime Minister Benjamin Netanyahu’s office announced on X.

On the ground, the shift was visible.

In Khan Younis, troops pulled back from eastern neighborhoods near the border even as residents reported sporadic tank shelling.

In Gaza City, hundreds cautiously gathered near coastal roads, hoping to return to what remains of their homes after months of relentless bombardment.

"Thank God my house is still standing,” said 40-year-old Ismail Zayda from the Sheikh Radwan district. "But my neighbors’ homes are gone. Entire districts are gone. They say there’s a cease-fire, but we’re still afraid.”

Rescue crews, entering long-inaccessible zones, recovered at least 10 bodies from earlier strikes. Many areas remain in ruins after Israeli attacks that have killed more than 67,200 Palestinians – mostly women and children – since October 2023, according to local authorities.

Trump’s diplomatic gamble

The deal, unveiled by Trump early Thursday, followed four days of indirect talks between Israeli and Hamas delegations in Egypt’s Sharm el-Sheikh, with mediators from Türkiye, Qatar, and Egypt.

The U.S. president hailed the cease-fire as a "turning point for peace,” framing it as the first step toward a long-term regional stability plan.

Under the first phase, Hamas will release Israeli hostages in exchange for Palestinian prisoners, while aid convoys will surge into Gaza to deliver food, fuel, and medical supplies to hundreds of thousands displaced by Israel’s campaign.

Khalil al-Hayya, Hamas’s exiled Gaza chief, said he received guarantees from the U.S. and other mediators that the war "is over.”

Still, hurdles remain. Both sides have yet to publish the list of prisoners to be freed, and disputes persist over who will govern Gaza once the withdrawal is complete. Hamas insists it will not disarm, defying Israeli demands.

Netanyahu faces dissent within his own coalition, where several ministers oppose any compromise with Hamas. Yet the prime minister, under mounting international and domestic pressure, described the agreement as "a painful but necessary step toward restoring security.”

War’s human and political fallout

The Gaza war – now in its second year – has left the enclave unrecognizable.

Once-bustling neighborhoods are reduced to rubble, infrastructure destroyed, and nearly 2 million Palestinians displaced.

The conflict has also strained Israel’s alliances, particularly with Washington, as Trump’s patience with Netanyahu appeared to wane in recent months.

Across Israel and the Palestinian territories, news of the deal sparked cautious celebrations.

Families of hostages gathered in Tel Aviv’s Hostages Square, waving flags and holding photos of loved ones still in Gaza.

In Rafah and Deir al-Balah, crowds prayed amid ruins, hopeful that the nightmare might be nearing an end.

The U.S. announced it would deploy 200 troops as part of a multinational task force – alongside Egyptian, Qatari, Turkish, and Emirati personnel – to monitor postwar stability from outside Gaza’s borders.

Trump is expected to visit the region on Sunday, potentially for a signing ceremony in Egypt.

Knesset Speaker Amir Ohana has invited him to address the Israeli parliament, a move widely seen as recognition of his role in securing the breakthrough.

Despite the fragile optimism, few in Gaza are celebrating yet. "We’ve heard of cease-fires before,” said Zayda. "We just want to live. To stop counting the dead.”