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Hamas officially released the last living Israeli hostage on Monday as part of a ceasefire agreement — a major milestone in ending two years of devastating conflict in Gaza. The event coincided with U.S. President Donald Trump’s speech before the Israeli parliament, urging both sides to choose peace.

The Israeli military confirmed that all surviving hostages have been safely transferred from Gaza through the Red Cross. Thousands of people gathered at “Hostage Square” in Tel Aviv, cheering, hugging, and weeping as they welcomed their loved ones home.

As part of the agreement, Israel released nearly 2,000 Palestinian prisoners ahead of a peace summit in Egypt aimed at strengthening the ceasefire. Many of the freed prisoners arrived in Gaza and the occupied West Bank, greeted with tears of joy by their families.

In his speech, Trump declared, “The skies are calm, the guns are silent, and the sun rises over a Holy Land that finally knows peace.” He emphasized the need to turn military victories into lasting peace and prosperity across the Middle East.

However, major challenges remain in resolving the Gaza issue and the long-standing Israeli-Palestinian conflict that has divided the region for generations.

The prisoner exchange forms part of the first phase of the Gaza agreement reached last week in Egypt’s Sharm el-Sheikh resort. Over 20 world leaders are expected to attend the upcoming summit to discuss Trump’s 20-point blueprint for ending the war.

The deal was achieved two years after Hamas launched a cross-border attack on October 7, 2023, killing 1,200 people and taking 251 hostages — the deadliest day for Jews since the Holocaust. In response, Israeli airstrikes and ground operations have killed more than 67,000 Palestinians, according to local health authorities, and left much of Gaza in ruins.

A global hunger monitor reports that over half a million Palestinians in Gaza are suffering from famine, while millions more have been displaced. Under Trump’s plan, humanitarian aid, food, medicine, and fuel are expected to flow more smoothly into the enclave.

Trump also proposed the creation of an international “Peace Council” to oversee the agreement’s implementation and stabilize the region. He even suggested the possibility of a future peace accord between Israel and its long-time rival, Iran.

In Israel, emotional reunions took place as freed hostages were embraced by their families, waving flags and shedding tears of relief. Meanwhile, many Palestinians expressed mixed emotions — joy over the release of prisoners, but deep sorrow over the destruction and loss in Gaza.

While this ceasefire represents a hopeful step, lasting peace in the Middle East remains uncertain. Key challenges include the withdrawal of Israeli forces from Gaza, the fate of Hamas, and efforts toward the creation of an independent Palestinian state.