'Now the rebuilding begins,' says Trump as he signs Gaza peace plan in Egypt

The US president says the ceasefire will hold and the second phase of negotiations for a lasting peace are under way.

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"A new and beautiful day is rising and now the rebuilding begins," said Trump, praising regional leaders who helped cement the truce between Israel and Hamas.

Earlier, in his address to the Israeli parliament, the Knesset, the president told cheering lawmakers that "the long and painful nightmare is finally over".

Israel is releasing 250 Palestinian prisoners and more than 1,700 other Palestinians detained during the two-year military operations in Gaza in exchange for the last 20 living Israeli hostages held by Hamas.

The exchange, the first phase of Trump's peace plan, is also due to include the return of the bodies of 28 dead Israeli hostages.