The conflict began on 10 May after Israeli police officers clashed with worshippers at the Al-Aqsa mosque in Jerusalem's old city during the last ten nights of Ramadan.
On the first day of violence, more than 20 people were killed.
The peace deal, which was brokered by Egypt, is meant to end more than ten days of violence and fighting between the two factions.
Israeli Prime Minister Benjamin Netanyahu said he would take part in an international effort to rebuild Gaza, but was quick to clarify that he would work with the Palestinian Authority — a semi-autonomous group representing much of the Palestinian territories — and not Hamas.
Palestinians in Gaza poured into the streets to celebrate the Israel-Hamas ceasefire.
For its part, Hamas said "the Palestinian resistance will abide by this agreement as long as the occupation abides by it," according to The New York Times.
Gaza's health officials say 232 Palestinians were killed and more than 1,900 were wounded during the conflict - which was the worst fighting that the region has seen in years.
The bulk of these deaths have been civilians. At least 60 of those killed were children.
Israel claimed that a recent strike on a Hamas that killed 42 civilians in their homes was an "accident" that lead to "unintended consequences."
Israel reported that at least 12 of its citizens were killed in the violence.
Around 72,000 people were displaced during the bombardments and were forced into shelters set up by the United Nations in schools.
Source: The New York Times
According to the Guardian, the airstrikes have also taken a huge toll on the city's healthcare system. Multiple medical facilities were damaged during the strikes, while others suffered severe medicine and supply shortages.
CNN reported that on top of having to deal with injuries, the city's doctors are also bracing to deal with a surge in Covid cases — as makeshift shelters may soon turn into hotbeds for the virus.
Celebrations continued into the wee hours, though some are skeptical that the fragile peace will hold.
During the last round of major conflicts between the two, in 2014, nine separate ceasefires were called before a lasting, if tense, peace was found.
Al Jazeera wrote that the ceasefire was called after Israeli Prime Minister Benjamin Netanyahu's office announced that his security cabinet had voted unanimously to accept the Egyptian-mediated truce.
The AP reported that senior Hamas official Khalil al-Hayya called the truce a "victory" when he addressed a crowd in Gaza City.
He also claimed that Israel had not destroyed Hamas's military capabilities and that its fighters were "striding proudly" in its network of underground tunnels.
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