JERUSALEM, Israel: Israel and Hamas took a cautious first step toward implementing a fragile Gaza ceasefire on Monday, exchanging hostages and prisoners as part of an initial phase of the agreement. Yet the most complicated issues — Hamas's disarmament, Gaza's future governance, and the question of Palestinian statehood — remain unresolved.

The moment offered a brief respite in what has been the deadliest conflict in the history of Israel and the Palestinians, but also highlighted how tenuous the truce is.

For many Israelis, the release of the final 20 living hostages brought both relief and closure after months of anguish. Still, families of the deceased vowed to keep pressing for the return of their loved ones' remains. With the surviving captives now free, the weekly protests demanding an end to the war may lose momentum — easing pressure on Prime Minister Benjamin Netanyahu as he weighs the next steps.

Four bodies of Israeli hostages were also returned on Monday, and another 5 since then. However Hmas says it is having difficulty locating the remains of the remaining 19 due to the massive destruction of the tuny enclave. The International Red Cross has confirmed the view that the remains of dead hostages will be difficult to locate.

"Both Israeli and U.S. officials close to the process are concerned that elements within the Netanyahu government, particularly ultranationalist ministers Betzalel Smotrich and Itamar Ben-Gvir, will use the issue of hostage remains to undermine the deal [which they oppose] and push for the resumption of the war," a report by the Axios news outlet said.

In Gaza, crowds celebrated as prisoners came home, and many hoped the violence might finally end. Yet everyday life remains dire: months of Israeli bombardment have shattered infrastructure, paralyzed the economy, and displaced hundreds of thousands. Rebuilding the territory — and determining who will fund it — could take years.

Netanyahu, who skipped a planned summit in Egypt due to a Jewish holiday, told parliament that the deal "ends the war by achieving all our objectives." Israel has long insisted it would not stop fighting until all hostages were freed and Hamas was defeated. Critics, however, accuse Netanyahu of prolonging the war for political reasons, a charge he denies.

Unlike past prisoner exchanges, Hamas held no public ceremonies before the releases. Instead, masked militants offered families brief video calls with their loved ones before they were handed over.

The hostages' ordeal had united much of Israeli society, sparking massive weekly demonstrations calling for their return. Many protesters argued that Netanyahu's twin aims — freeing the hostages and destroying Hamas — could not be achieved simultaneously, and that the war itself endangered those in captivity.

Israeli Defense Minister Israel Katz warned that any delay by Hamas in returning the bodies of the remaining hostages would constitute a breach of the ceasefire.

Major sticking points persist. Israel continues to demand that Hamas disarm — a condition the group flatly rejects, insisting instead that all Israeli forces withdraw from Gaza. Although Israeli troops have pulled back from parts of Gaza City, Khan Younis, and other areas, they remain in Rafah, in parts of the north, and along the border.

Gaza's future governance is equally uncertain. A U.S.-backed proposal envisions an international body overseeing the territory while Palestinian technocrats handle daily administration. Hamas says Gaza's leadership must be chosen by Palestinians themselves.

The plan also contemplates a role for Mahmoud Abbas's Palestinian Authority — provided it undergoes sweeping reforms — and calls for an Arab-led international security force, with Palestinian police trained in Egypt and Jordan. Israeli troops would withdraw as these forces deploy, while roughly 200 U.S. personnel remain in Israel to monitor the truce.

The framework ultimately gestures toward a future Palestinian state — an idea Netanyahu continues to reject outright.