A Egypt-mediated truce between the Israeli government and the two main Palestinian armed groups in Gaza, Hamas and Islamic Jihad, began early on Friday morning after 11 days of deadly violence.
Following the news, US President Joe Biden pledged to salve the devastated Gaza Strip with humanitarian aid after the worst fighting in years.
Palestinians, many of whom had spent days huddled in fear of Israeli shelling, poured into Gaza's streets. Mosque loud-speakers feted "the victory of the resistance achieved over the Occupation (Israel) during the 'Sword of Jerusalem' battle".
In the countdown to the 2am (9am AEST) ceasefire, whose timing Hamas had publicly confirmed but Israel had not, Palestinian rocket salvoes continued and Israel carried out at least one air strike.
Each side said it stood ready to retaliate for any truce violations by the other. Cairo said it would send two delegations to monitor the ceasefire.
A Hamas official also said that Israel must end its violations in Jerusalem and address damages from the bombardment of Gaza following the ceasefire, warning the group still had its "hands on the trigger".
"It is true the battle ends today but [Israeli Prime Minister Benjamin] Netanyahu and the whole world should know that our hands are on the trigger and we will continue to grow the capabilities of this resistance," said Ezzat El-Reshiq, a member of the Hamas political bureau.
He told Reuters in Doha that the movement's demands also include protecting Al-Aqsa mosque in Jerusalem and ending the eviction of several Palestinians from their home in East Jerusalem, which Reshiq described as "a red line".
The violence erupted on 10 May, triggered by Palestinians' anger at what they assailed as Israeli curbs on their rights in Jerusalem, including during police confrontations with protesters at Al-Aqsa mosque during the Ramadan fasting month.
The fighting meant many Palestinians in Gaza could not mark the Eid al-Fitr festival at Ramadan's conclusion. On Friday, throughout Gaza, postponed Eid al-Fitr meals were held instead.
Gaza health officials said 232 Palestinians, including 65 children, had been killed and more than 1,900 wounded in aerial bombardments. Israel said it had killed at least 160 combatants.
![People gather on the street as they celebrate the ceasefire brokered by Egypt between Israel and the two main Palestinian armed groups in Gaza.](https://sbs-au-brightspot.s3.amazonaws.com/drupal/news/public/gettyimages-1233010341.jpg?imwidth=1280)
Israel and the two main Palestinian armed groups in Gaza, Hamas and Islamic Jihad, have announced a ceasefire. Source: AFP
Authorities put the death toll in Israel at 12, with hundreds of people treated for injuries in rocket attacks that caused panic and sent people rushing into shelters.
Hamas, the Islamist militant group that rules Gaza, cast the fighting as successful resistance of a militarily and economically stronger foe.
In Israel, relief was bittersweet.
"It's good that the conflict will end, but unfortunately I don't feel like we have much time before the next escalation," Eiv Izyaev, a 30-year-old software engineer, said in Tel Aviv.
Amid growing global alarm, Mr Biden had urged Israeli Prime Minister Benjamin Netanyahu to seek de-escalation, while Egypt, Qatar and the United Nations sought to mediate.
In a televised address on Thursday, the US president extended condolences to bereaved Israelis and Palestinians and said Washington would work with the United Nations "and other international stakeholders to provide rapid humanitarian assistance" for Gaza and its reconstruction.
Mr Biden said aid would be coordinated with the Palestinian Authority - run by Hamas' rival, President Mahmoud Abbas, and based in the West Bank - "in a manner that does not permit Hamas to simply restock its military arsenal".
Hamas is deemed a terrorist group in the West and by Israel, which it refuses to recognise.
Hamas previously demanded that any halt to the Gaza fighting be accompanied by Israeli drawdowns in Jerusalem. An Israeli official told Reuters there was no such condition in the truce.
UN Secretary-General Antonio Guterres said Israeli and Palestinian leaders had a responsibility beyond the restoration of calm to address the root causes of the conflict.
“Gaza is an integral part of the future Palestinian state and no effort should be spared to bring about real national reconciliation that ends the division,” he said.
'Hour by hour' talks to secure ceasefire
Mr Biden confirmed he spoke to Mr Netanyahu six times in the last 11 days.
He said a lot of work has gone into securing the ceasefire.
"We've held intensive high-level discussions, hour-by-hour, literally, [with] Egypt, the Palestinian Authority and other Middle Eastern countries with the aim of avoiding the sort of prolonged conflict we've seen in previous years when hostilities have broken out."
He said the US supports Israel's right to self-defence, but also the Palestinians' right to stability.
![File photo: Benjamin Netanyahu speaks at the 72nd session of the United Nations General Assembly in New York City on 19 September 2017.](https://sbs-au-brightspot.s3.amazonaws.com/drupal/news/public/netanyahu_13.jpg?imwidth=1280)
File photo: Benjamin Netanyahu speaks at the 72nd session of the United Nations General Assembly in New York City on 19 September 2017. Source: AAP
"I assured him [Mr Netanyahu] of my full support to replenish Israel's iron dome system to ensure defences and security of the future.
"...I believe the Palestinians and Israelis equally deserve to live safely and securely and to enjoy equal measures of freedom, prosperity and democracy. My administration will continue our quiet, relentless diplomacy towards that end."
The International Committee of the Red Cross warned that people in both Gaza and Israel "urgently need respite from non-stop hostilities".
![Palestinian man inspects his destroyed house after Israeli air strikes hit the Jabaliya refugee camp.](https://sbs-au-brightspot.s3.amazonaws.com/drupal/news/public/impact.jpg?imwidth=1280)
Palestinian man inspects his destroyed house after Israeli air strikes hit the Jabaliya refugee camp. Source: AAP
The United Nations relief agency UNRWA has called for A$49 million (US$38 million) in funding to aid humanitarian efforts in Gaza.
"This is needed to respond to the immediate food, non-food, health, psychosocial, WASH and emergency response capacity needs and to carry out essential emergency interventions during the hostilities in Gaza," the body said in a statement.
The military conflict has sharply heightened tensions and sparked violence between Jews and Arab-Israelis, while Palestinian protesters in the West Bank and east Jerusalem have repeatedly clashed with security forces.