Israel and Hamas have signed off on the first phase of the U.S.-proposed Gaza deal, allowing for the release of all Israeli hostages, U.S. President Donald Trump announced on Wednesday.

“I am very proud to announce that Israel and Hamas have both signed off on the first Phase of our Peace Plan,” Trump said on Truth Social.

“This means that ALL of the Hostages will be released very soon, and Israel will withdraw their Troops to an agreed upon line as the first steps toward a Strong, Durable, and Everlasting Peace,” Trump added.

It marked potential progress in the push to end the war in Gaza, which has evolved into a regional conflict, drawing in countries such as Iran, Yemen and Lebanon, and reshaping the Middle East.

Trump had previously said a deal was “very close” and that he might travel to Egypt this weekend, as his envoys joined talks in that country to try to seal a ceasefire and hostage-release agreement.