Israel’s high-level security Cabinet approved a ceasefire and hostage-prisoner exchange deal with Hamas, paving the way for a weeks-long pause starting Sunday to the 15 months of fighting in Gaza.

The deal will now be brought to the full Cabinet, where it’s expected to be signed off despite opposition by some far-right members of Prime Minister Benjamin Netanyahu’s government.

The six-week truce and first exchange of Israeli hostages for Palestinian prisoners are expected to begin the day before Donald Trump’s inauguration as U.S. president on Jan. 20.

Both he and outgoing leader Joe Biden pushed the warring sides to reach a deal before the presidential handover.

In a sign that plans are progressing for the start of the ceasefire Sunday, the Israeli justice ministry published a list of Palestinian prisoners due to be released in exchange for Israeli hostages. The names are meant to give relatives of Hamas victims the chance to appeal to the High Court of Justice against the release of specific prisoners. This is mainly seen as a formality.

Israel can’t release prisoners before 4pm local time Sunday, according to the ministry’s statement.

The truce had looked at risk of collapsing for much of Thursday when Netanyahu accused Hamas of reneging on some commitments. Final details of the agreement have now been ironed out.

Under the terms of the deal, Hamas — designated a terrorist organization by the U.S. and many other countries — will gradually release 33 of about 98 hostages that remain in Gaza, many of whom are dead. Israel’s military will withdraw from populated areas of the Gaza Strip and free around 1,000 Palestinian prisoners.

The agreement was mediated by the U.S., Qatar and Egypt. It envisions further negotiations between the sides to end the war that began in Oct. 2023, though those terms have yet to be negotiated, as well as a boost to humanitarian aid flows.

Israel stocks have gained significantly in recent days in anticipation of a ceasefire. The main bourse in Tel Aviv rose 4.4% this week in dollar terms, one of the best performances globally.

The shekel strengthened 0.8% against the dollar as of 3:25 p.m. on Friday, and Israel’s dollar bonds were among the best performers in emerging markets. Debt securities due in 2060 gained about 1.2 cents on the dollar to 65 cents, the biggest jump since November.

Israeli wariness

Within Israel there’s still plenty of wariness about the ceasefire, with many politicians saying the war should continue until Hamas is completely destroyed.

In an early political fallout from the deal, Itamar Ben Gvir, leader of Israel’s hardline Jewish Power party, said Thursday in a televised statement that he’ll quit Netanyahu’s coalition as soon as the accord is approved by the wider Cabinet. He said he’d be willing to return if fighting resumes after the deal’s first stage, which is expected to last 42 days.

Ben Gvir argued against the deal in Friday’s security-Cabinet meeting, saying he’d been “horrified to learn that Israel will be releasing Palestinian prisoners jailed for life to return to Jerusalem and the West Bank, when everyone knows they’ll try to harm again.”

Netanyahu’s Cabinet, however, is in no immediate risk of collapsing after another far-right political ally, Finance Minister Bezalel Smotrich, has at least temporarily shelved his resignation threats. Smotrich had earlier called the deal a “catastrophe that’ll put Israel’s security at risk.”

Hamas invaded Israel from Gaza on Oct. 7, 2023, killing 1,200 people, mostly civilians, and taking 250 people hostage. Israel responded with an intense air and ground war in Gaza that has devastated the enclave and killed over 46,000 people, the Hamas-run health ministry says, without differentiating between combatants and civilians.

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With assistance from Marissa Newman.

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