Truce in effect: Israel

THE Israeli military has said the ceasefire agreement with Hamas has come into effect and that troops have withdrawn to the agreed-upon deployment lines.

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The announcement came after Palestinians reported heavy shelling on Friday morning in northern Gaza, hours after Israel's cabinet started walking north after the military's announcement.

The approval marked a key step toward ending a ruinous two-year war that has destabilised the Middle East.

A brief statement from Israeli prime minister Benjamin Netanyahu's office said the cabinet approved the "outline" of a deal to release the hostages, without mentioning other aspects of the plan that are more controversial.