The return of Israeli hostages after two years of horror has been celebrated halfway across the world, with Jewish Australians optimistic it can lead to long-term peace.

The last Israelis held captive by Hamas since the October 7, 2023, attacks by Hamas started being released on Monday afternoon AEDT.

Israel has, in exchange, withdrawn forces from Gaza and will release about 2000 Palestinians, including senior militants and those held without charge.

Melbourne's Jewish community packed into the Beth Weizmann Jewish Community Centre in Caulfield to sing, dance and watch a live stream of the scenes in Israel.

The crowd of about 1000 cheered as Air Force One touched down at Ben Gurion Airport carrying US President Donald Trump, who was expected to address the Knesset after helping to brok

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