US President Donald Trump on Saturday announced that Israel has agreed to an “initial withdrawal line” in Gaza, which has also been shared with Hamas, setting the stage for a potential ceasefire and prisoner exchange in the two-year-old conflict. Trump said in a post on Truth Social, “After negotiations, Israel has agreed to the initial withdrawal line, which we have shown to, and shared with, Hamas. When Hamas confirms, the Ceasefire will be IMMEDIATELY effective, the Hostages and Prisoner Exchange will begin, and we will create the conditions for the next phase of withdrawal, which will bring us close to the end of this 3,000 YEAR CATASTROPHE. Thank you for your attention to this matter and, STAY TUNED!” The announcement comes just hours after Israeli Prime Minister Benjamin Netanyahu said his country was “on the verge of a very great achievement.” In a statement released Saturday morning, Netanyahu said, “It is not yet final; we are working on it diligently, and I hope, with God’s help, that in the coming days, during the Sukkot holiday, I will be able to inform you about the return of all our hostages, both living and deceased, in one phase, while the IDF remains deep within the Strip and in the controlling areas within it.” The development follows Trump’s ultimatum to Hamas on Friday, giving the group a deadline of Sunday, 6 pm (Washington DC time) to accept the US-proposed peace plan. Trump had warned that “all hell, like no one has ever seen before,” would follow if Hamas failed to comply. Under the Trump plan, a phased approach is proposed, starting with the release of Israeli hostages, followed by a ceasefire and a broader peace framework. Responding to the ultimatum, Hamas confirmed on Friday that it had agreed to release all Israeli hostages, both alive and deceased, and was ready to enter mediated negotiations to finalise the details. The group stated it approved “to release all Israeli prisoners, both living and dead, according to the exchange formula contained in President Trump’s proposal,” provided the necessary conditions were met. Trump welcomed Hamas’ announcement, saying the group had shown it was “ready for a lasting PEACE,” and urged Israel to immediately halt its air campaign. He wrote on his Truth Social platform: “Israel must immediately stop the bombing of Gaza, so that we can get the Hostages out safely and quickly! 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.”