After nearly two years of war in Gaza, a sudden and surprising development has emerged. Hamas has issued a statement agreeing in principle to release all Israeli captives it holds — both the living and the remains of the dead — and to hand over the administration of Gaza to a Palestinian technocratic body.

The concession came in response to US President Donald Trump’s 20-point peace plan, unveiled in Washington alongside Israeli Prime Minister Benjamin Netanyahu. Trump had warned in typically stark terms: ‘If this LAST CHANCE agreement is not reached, all HELL, like no one has ever seen before, will break out against Hamas. THERE WILL BE PEACE IN THE MIDDLE EAST ONE WAY OR THE OTHER.’

On his Truth Social account, he pressed further: ‘RELEASE THE HOSTAGES, ALL OF THEM, INCLUDING THE BODIES OF THOSE THAT ARE DEAD, NOW! An Agreement must be reached with Hamas by Sunday evening at SIX (6) P.M., Washington, D.C. time.’

Hamas’s reply was cautiously affirmative. ‘The movement announces its approval of releasing all occupation prisoners — both living and remains — according to the exchange formula contained in President Trump’s proposal, with the necessary field conditions for implementing the exchange,’ it said.

Trump hailed this as vindication of his approach. ‘Based on the statement just issued by Hamas, I believe they are ready for a lasting PEACE. Israel must immediately stop the bombing of Gaza, so that we can get the Hostages out safely and quickly! Right now, it’s far too dangerous to do that. We are already in discussions on details to be worked out. This is not about Gaza alone; this is about long sought PEACE in the Middle East.’

An opening — but not a deal

For the first time in nearly two years of war, both Israel and Hamas face narrowing options. Neither can simply reject Trump’s proposal outright without incurring costs. Families of Israeli hostages, long desperate, see the latest developments as a sliver of hope. Anat Angres, the mother of Israeli soldier Matan Angres, 22, wrote on X: ‘Thank you President Trump. After two years of suffering, I feel closer than ever to hug my son Matan again.’

Palestinians in Gaza, enduring immense suffering, see the potential for at least a pause in the bombardment. International mediators, including Qatar and Egypt, are already working on mechanisms for implementation.

Israel’s position

Prime Minister Netanyahu’s office released a statement: ‘In light of Hamas’s response, Israel is preparing to immediately implement the first phase of Trump’s plan for the immediate release of all hostages.’ Netanyahu also affirmed his cooperation with the US president’s initiative, saying: ‘We will continue to work in full cooperation with the President and his team to end the war in accordance with the principles set forth by Israel that are consistent with President Trump’s vision.’

Speaking in Hebrew to a domestic audience, however, Netanyahu underlined that he had not agreed to the establishment of a Palestinian state and insisted Israeli forces would remain in most of Gaza. In the meantime, Israeli bombardment of Gaza has continued. At least 72 Palestinians were killed in strikes on Friday, according to medical sources.

Sticking points

Three issues stand out as potential deal-breakers:

First is sequencing. Trump has demanded that hostages be freed quickly, within a 72-hour window, under a suspension of Israeli military operations. But who will monitor the ceasefire? Who guarantees safe passage in an active war zone? Without clarity, even small violations could unravel the process.

Second is governance. Hamas reiterated: ‘The movement also reaffirms its approval to hand over the administration of the Gaza Strip to a Palestinian body of independents (technocrats) based on Palestinian national consensus and supported by Arab and Islamic backing.’

Trump’s idea of an external ‘Board of Peace’ with international figures was rejected bluntly. ‘We will never accept anyone who is not Palestinian to control the Palestinians,’ Hamas official Mousa Abu Marzouk told Al Jazeera, adding that the appointment of Tony Blair would be particularly unwelcome because of his role in the Iraq war. The tension between external oversight and internal legitimacy remains unresolved.

Third is disarmament. Trump’s 20-point peace plan calls for Hamas and other factions to be demilitarised and barred from any role in Gaza’s governance. For Netanyahu and his allies, Hamas must be stripped of its military capacity. Yet Hamas’s statement made no reference to disarmament, leaving the issue for future discussion. For the group, observers note, surrendering arms without political guarantees would be tantamount to capitulation.