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Hamas on Friday announced it agreed to release all Israeli hostages, dead or alive, as part of President Donald Trump's Gaza proposal, Reuters reported.

Leaders also indicated they were prepared to enter mediated negotiations to finalize the deal, according to the report.

The announcement came hours after Trump issued a public warning to the terrorist group, noting its leaders would be "hunted down, and killed" if the remaining Israeli hostages were not released by Sunday night.

This is a developing story. Please check back for updates.

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