The peace deal could help improve cohesion in Australia after Israeli and Palestinian tensions. Photo: Bianca De Marchi/AAP PHOTOS

A US-brokered ceasefire in the Middle East is being met with cautious optimism by Australia, amid hopes the agreement could also ease social tensions at home.

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Israel's cabinet is set to sign off on the deal on Friday, Australian time, with a Gaza ceasefire expected to come into effect within 24 hours.

Under the deal, Hamas will release the remaining Israeli hostages it has been holding in Gaza since October 7, 2023, and Israel will free nearly 2000 Pale

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