Palestinians in Khan Younis in southern Gaza celebrated and chanted together on Thursday after U.S. President Donald Trump announced that the parties had agreed to the “first phase” of a deal signaling a major breakthrough in the two-year war in Gaza.

Once the Cabinet of Israeli Prime Minister Benjamin Netanyahu and the country's parliament ratify the deal — expected on Thursday evening — a partial pullback of Israeli forces in Gaza will start, according to Arab officials and a Hamas official, speaking on condition of anonymity because the text of the accord has not been released.

The extent of the withdrawal has not yet been made public, but Hamas officials have said troops will move out of populated areas.

Hamas has agreed to release the 20 living hostages within a few days, likely Monday, and Israel will free hundreds of Palestinian prisoners.

Hamas will also hand over the remains of around 28 hostages believed to have died, though for logistical reasons that may take longer.

Seham Ashour, who was out in Khan Younis on Thursday said she was relieved for the children of Gaza. "We are very happy for the end of bloodshed, especially that of the children because the children are not at fault in this whole war."

The breakthrough deal took pressure on both Israel and Hamas from the United States, Arab countries and Turkey, each saying it was time to end a 2-year-old war that has devastated the Gaza Strip, killed tens of thousands of Palestinians, sparked other conflicts around the region and increasingly isolated Israel.

That push sealed an agreement on a first phase that would free the remaining living Israeli hostages within days in exchange for the release of hundreds of Palestinians imprisoned by Israel.