The U.S. is preparing to establish a center in Israel that will monitor the cease-fire and oversee the distribution of humanitarian aid.

Hamas has demanded that all rivals lay down their weapons within 48 hours and surrender their leaders to the militant group. Popular Forces, the largest rival that is run by Yasser Abu Shabab, controls larges swaths of Rafah and has received weapons, armoured cars and training from Israel, has refused to comply.

Thousands of Palestinians began returning to their homes across Gaza on Saturday amid a U.S.-brokered ceasefire.

Israel’s Cabinet early Friday approved President Donald Trump’s plan for a ceasefire in the Gaza Strip and the release of all the remaining hostages held by Hamas, a key step toward ending the war.

"As of now it seems like the hostages will be coming home and it's just relief and joy and hope that they'll all be OK," a Jewish UConn student said.

Hamas has said it has given Israel a list of Palestinian prisoners it wants to be released in return for the freeing of hostages in Gaza. Tahir Al-Nono, the group’s political media advisor, said that “a spirit of optimism is prevailing” surrounding the ongoing negotiations for a peace deal that continue today in Sharm El-Sheik, Egypt.

Last month, President Donald Trump proposed a 20-point plan for a ceasefire in the Gaza Strip ahead of this week's negotiations in Egypt.

The ceasefire deal between Hamas and Israel creates political risks for the militant group's leadership and for Israeli Prime Minister Benjamin Netanyahu.