But the situation remains tense, with hostages still hours away from the first scheduled release.

Hundreds gathered in Tel Aviv to mark the second birthday of the youngest hostage, Kfir Bibas, taken when he was just eight-and-a-half months old and expected to be among those released.

"He's two years old! It's like, so long, and he never celebrated a birthday," Yosi Shnaider, Kfir's cousin, told the media.

Many in Israel are celebrating the ceasefire but remain angry it took so long.

"This deal is a deal that we had on the table, like, five months ago. And we could have signed it. And we could have saved lives," Gal Alkaly told the Hostages and Missing Families Forum.

But others see the ceasefire as a capitulation to Hamas.

The agreement rests on a knife's edge, with Israeli Prime Minister Benjamin Netanyahu reserving the right to break the deal.

"Both President Trump and President Biden gave full backing to Israel's right to return to fighting if Israel reaches the conclusion that negotiations of the second stage is fruitless," Netanyahu said.

Even with the deal struck, the attacks have continued – in the hours before the ceasefire took effect, an Israeli airstrike killed a family of nine in southern Gaza.

Grief-stricken families in mourning, as others pray they will soon be reunited with loved ones.

Efrat Machikawa is the niece of 80-year-old hostage Gadi Moses, a peace activist and grandfather of 14, who is slated to be among those released in the first phase.