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Trump declares 'new Middle East' as hostage-prisoner swap marks Gaza ceasefire

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Donald Trump hails a ‘historic dawn’ for the Middle East as he urges Israel to pursue peace following the Gaza ceasefire and travels to Egypt for a regional summit.

TEL AVIV (Agencies) – US President Donald Trump on Monday hailed what he called the “historic dawn of a new Middle East” as Israel and Hamas began implementing a ceasefire deal that saw the release of all 20 remaining Israeli hostages in Gaza and nearly 2,000 Palestinian prisoners from Israeli jails.

Speaking before Israel’s parliament, the Knesset, Trump urged the country to “translate its battlefield victories into peace and prosperity” and called on Palestinians to “turn forever from the path of terror and violence.”

ADDRESS TO THE KNESSET

Trump received a prolonged standing ovation in Jerusalem, where Israeli lawmakers chanted his name and waved red hats emblazoned with “Trump, The Peace President.” He was joined by Israeli Prime Minister Benjamin Netanyahu and other dignitaries during what was described as one of the most highly anticipated addresses to the Knesset in recent history.

“You’ve won,” Trump told lawmakers. “Now it is time to seize this victory and build peace for the entire Middle East.” He also thanked Arab and Muslim nations that mediated the truce, praising their cooperation as “an incredible triumph for Israel and the world.”

Trump's speech disrupted by Israeli lawmakers

In a surprise remark, Trump urged Israeli President Isaac Herzog to pardon Netanyahu, who faces corruption charges. “Cigars and some champagne – who the hell cares?” he said, prompting laughter and applause. “He’s one of the greatest wartime leaders.” Netanyahu, smiling, replied that Trump was “the greatest friend Israel has ever had in the White House.”

GAZA TRUCE AND HOSTAGE EXCHANGE

The US-brokered Gaza ceasefire, which took effect last week, ended two years of fighting between Israel and Hamas that left tens of thousands dead and much of Gaza in ruins. Under the first phase of the agreement, Hamas released all 20 surviving Israeli hostages, while Israel freed over 1,900 Palestinian detainees.

Crowds gathered in Gaza’s Khan Yunis and the West Bank city of Ramallah to welcome the released prisoners, waving Palestinian flags and chanting slogans. Israel’s military confirmed that 13 remaining hostages had crossed back into Israel under Red Cross supervision, while Hamas said it would return the bodies of four deceased captives later in the day.

Living hostages and Palestinian prisoners are released as part of ceasefire in Gaza

UN Secretary-General Antonio Guterres urged all parties to “build on this momentum,” calling the swap a “crucial milestone” toward ending the conflict. The European Union and China also welcomed the ceasefire, with Beijing emphasising that post-war governance in Gaza must “reflect the will of the Palestinian people.”

TRUMP’S CALL FOR PEACE

In his speech, Trump framed the moment as a turning point. “Generations from now, this will be remembered as the moment everything began to change,” he said. He promised US assistance in rebuilding Gaza, comparing the devastation to a “demolition site” but expressing hope it could one day become “the Riviera of the Middle East.”

The president added that Iran, long viewed as a key backer of Hamas and Hezbollah, could also “find a place in this peace.” Earlier this year, US and Israeli strikes targeted Iranian nuclear and military sites during a brief regional flare-up.

US is ready for deal with Iran when Tehran is, Trump says

Trump told reporters aboard Air Force One that “the war is over” and that he believed both sides were “tired of it.” His administration, he said, would continue to support Israel’s security while working with regional partners on reconstruction efforts and humanitarian relief.

REACTIONS FROM WORLD LEADERS

The ceasefire drew global attention. Ukrainian President Volodymyr Zelensky said the Gaza deal “brings hope that peace can come elsewhere,” adding that “when peace is achieved in one part of the world, it gives hope to others.” German Chancellor Friedrich Merz, speaking ahead of the upcoming Egypt summit, said the agreement proved that “the end of war is possible if the international community stands together.”

Russian Foreign Minister Sergei Lavrov, however, criticised Trump’s plan as “too vague” on Palestinian statehood, saying it failed to outline the future of the West Bank.

HEADING TO EGYPT

Following his Jerusalem address, Trump travelled to the Egyptian resort city of Sharm el-Sheikh for a high-level peace summit co-chaired with Egyptian President Abdel Fattah el-Sissi. More than 20 leaders, including those from Pakistan, France, Germany, and the Palestinian Authority, are attending the meeting to discuss postwar reconstruction and the future governance of Gaza.

PM Shehbaz, Palestinian President meet at Peace Summit in Sharm El-Sheikh

Palestinian Authority President Mahmoud Abbas is among those attending, marking his first major appearance since the outbreak of the 2023 Gaza war. Neither Israel nor Hamas is officially represented at the summit. Netanyahu declined Trump’s invitation, citing the Jewish holiday of Simchat Torah.

Egyptian officials confirmed that reopened border crossings will allow humanitarian supplies into Gaza, where famine and disease continue to threaten over two million residents. Around 200 US troops will assist in monitoring the ceasefire and coordinating aid, alongside international partners and NGOs.

A FRAGILE CALM

While the ceasefire has brought rare scenes of celebration, uncertainty lingers. Israel insists Hamas must disarm before reconstruction begins, while Hamas demands the full withdrawal of Israeli troops from Gaza. Negotiations over the territory’s governance and long-term peace remain unresolved.

Still, Trump struck an optimistic note as he departed Israel. “This is the dawn of a new Middle East,” he said. “After pain and death and hardship, it’s time for people to build – not destroy.”

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