In a surprise announcement on Friday, President Joe Biden said Israel had offered Hamas a ceasefire deal to end the war in Gaza.
Mr Biden outlined the proposal’s three phases during an address at the White House.
However, since the announcement, Israel’s Prime Minister Benjamin Netanyahu suggested the proposal is a “non-starter” until Israel’s long-standing conditions for ending the war are met. Hamas said it viewed the proposal “positively”.
Here’s a look at what we know about the deal so far, how it compares with previous proposals and how both sides have reacted to the US president’s address.
First phase
This would be a “full and complete ceasefire” lasting six weeks, Mr Biden said, adding it would see Israeli forces withdraw from all densely populated areas of Gaza.
During this time, Hamas would release an unspecified number of hostages, including women, the elderly and the wounded, in exchange for the release of hundreds of Palestinian prisoners. Israel says around 100 hostages are still captive in Gaza, along with the bodies of around 30 more.
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American hostages would be released at this stage, the US president said, adding the remains of some hostages who have been killed would be returned to their families.
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‘Exodus’ from Gaza as Israeli assault continues
Palestinian civilians would return to their homes and neighbourhoods across Gaza and humanitarian assistance would surge during the first phase, with 600 trucks being allowed into Gaza each day.
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He said Israel and Hamas would negotiate a permanent end to the fighting while this ceasefire was in place. If the negotiations were to take longer than six weeks, the ceasefire would continue for as long as it takes to strike a deal, he added.
Second phase
Mr Biden described this as a “permanent end to hostilities”.
It would include the release of all remaining living Israeli hostages, including male soldiers, and Israel would withdraw all its forces from Gaza.
The president admitted there were “a number of details to negotiate to move from phase one to phase two”.
Third phase
The final phase calls for the start of a major reconstruction of Gaza, which faces decades of rebuilding from devastation caused by the war.
Any final remains of hostages who have been killed would be returned to their families.
What has Israel said?
The office of Benjamin Netanyahu, the prime minister, released a statement on X after Mr Biden’s address.
It read: “The government of Israel is united in its desire to return the hostages as soon as possible and is working to achieve this goal.
Image: Damages seen on Friday after Israeli forces withdrew from a part of refugee camp in northern Gaza Strip. Pic: Reuters
Image: Pic: Reuters
“The prime minister authorised the negotiating team to present a proposal to that end, which would also enable Israel to continue the war until all its objectives are achieved, including the destruction of Hamas’s military and governing capabilities.
“The actual proposal put forward by Israel, including the conditional transition from one phase to the next, allows Israel to uphold these principles.”
While Mr Netanyahu’s office confirmed he authorised negotiators to present the deal, sources close to the Israeli prime minister have told Sky News they do not “wholly recognise or agree with” the proposal outlined by Mr Biden.
In a further statement on Saturday morning, Mr Netanyahu’s office said: “Israel’s conditions for ending the war have not changed: the destruction of Hamas’s military and governing capabilities, the freeing of all hostages and ensuring that Gaza no longer poses a threat to Israel.
“Under the proposal, Israel will continue to insist these conditions are met before a permanent ceasefire is put in place. The notion that Israel will agree to a permanent ceasefire before these conditions are fulfilled is a non-starter.”
Israel’s government has always maintained its objective in the Gaza offensive is to annihilate Hamas, which rules Gaza, in response to the attack by the group on 7 October.
What has Hamas said?
The militant group said it “views positively” what was included in Mr Biden’s speech, adding it will deal “constructively with any proposal based on a permanent ceasefire, complete withdrawal from the Gaza Strip, reconstruction, the return of the displaced to all their places of residence, and the completion of a serious prisoner exchange deal if the occupation declares its explicit commitment to that”.
Image: Palestinians in the ruins of their tent camp in Rafah after an Israeli strike. Pic: Reuters
How does this compare to the last ceasefire proposal?
Hamas claimed it agreed to a ceasefire deal proposed by Egypt and Qatar last month, which was similarly said to have three phases.
That proposal came after two days of talks in Cairo, with a delegation from Hamas – and intermediaries from Egypt, Qatar and the United States.
A senior Biden administration official who briefed reporters on Friday said the ceasefire deal Israel has agreed to now is “nearly identical to Hamas’s own proposals of only a few weeks ago”.
But Mr Netanyahu’s office previously said the truce proposal published by Hamas fell short of its demands, and an Israeli official described the Hamas deal announcement as “a ruse intended to make Israel look like the side refusing a deal”.
Here’s what Hamas claimed the proposal last month would have looked like:
First phase
Fighting would have paused for 42 days and Hamas would have released 33 hostages, including the remaining Israeli women – both civilians and soldiers – as well as people under age 19 who weren’t soldiers, adults over 50 and people who were ill.
Israel would have released 30 Palestinian prisoners in exchange for each Israeli civilian hostage and 50 in exchange for each female soldier.
Image: The aftermath of the Israeli strike on tent camp in Tel al Sultan, Rafah. Pic: AP
IDF troops would have started withdrawing from Gaza in phases and displaced Palestinians would begin returning to their home neighbourhoods.
Israel would allow “intensive and sufficient quantities” of humanitarian aid, with 600 trucks entering Gaza daily.
Second phase
This would also have lasted 42 days, but similarly to the new proposal, the exact terms of this phase would need to be negotiated during the first.
Hamas said it may have entailed the release of all the remaining Israeli men, both civilians and soldiers, in Gaza. In return, Israel could have freed an agreed-upon number of Palestinian prisoners and detainees.
But the group said all Israeli troops must have withdrawn from Gaza in order for the second phase to begin.
Third phase
This would have included the release of the remains of deceased hostages still in Gaza, more prisoners held by Israel, and the start of a five-year reconstruction plan, Hamas claimed.
Hamas also wanted an end to the blockade on Gaza by Israel in cooperation with Egypt at this point.
The plan also stated Hamas would agree not to rebuild its military arsenal.
Has there been a ceasefire since Israel’s offensive began?
There was a temporary pause in place from 24 November to 1 December last year.
During that time, 79 Israeli hostages were released by Hamas, with hundreds of Palestinians freed from prisons in exchange.
International mediators – including diplomats from Qatar, Egypt and the US – had been working to extend the temporary truce, but reaching agreements on hostage releases became harder as most women and children had already been released.
Israel’s military ultimately resumed combat in Gaza on 1 December after accusing Hamas of violating the seven-day truce.
The court ruled to uphold the impeachment saying the conservative leader “violated his duty as commander-in-chief by mobilising troops” when he declared martial law.
The president was also said to have taken actions “beyond the powers provided in the constitution”.
Image: Demonstrators stayed overnight near the constitutional court. Pic: AP
Supporters and opponents of the president gathered in their thousands in central Seoul as they awaited the ruling.
The 64-year-old shocked MPs, the public and international allies in early December when he declared martial law, meaning all existing laws regarding civilians were suspended in place of military law.
Image: The court was under heavy police security guard ahead of the announcement. Pic: AP
After suddenly declaring martial law, Mr Yoon sent hundreds of soldiers and police officers to the National Assembly.
He has argued that he sought to maintain order, but some senior military and police officers sent there have told hearings and investigators that Mr Yoon ordered them to drag out politicians to prevent an assembly vote on his decree.
His presidential powers were suspended when the opposition-dominated assembly voted to impeach him on 14 December, accusing him of rebellion.
The unanimous verdict to uphold parliament’s impeachment and remove Mr Yoon from office required the support of at least six of the court’s eight justices.
South Korea must hold a national election within two months to find a new leader.
Lee Jae-myung, leader of the main liberal opposition Democratic Party, is the early favourite to become the country’s next president, according to surveys.
While the UK’s FTSE 100 closed down 1.55% and the continent’s STOXX Europe 600 index was down 2.67% as of 5.30pm, it was American traders who were hit the most.
All three of the US’s major markets opened to sharp losses on Thursday morning.
Image: The S&P 500 is set for its worst day of trading since the COVID-19 pandemic. File pic: AP
By 8.30pm UK time (3.30pm EST), The Dow Jones Industrial Average was down 3.7%, the S&P 500 opened with a drop of 4.4%, and the Nasdaq composite was down 5.6%.
Compared to their values when Donald Trump was inaugurated, the three markets were down around 5.6%, 8.7% and 14.4%, respectively, according to LSEG.
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Worst one-day losses since COVID
As Wall Street trading ended at 9pm in the UK, two indexes had suffered their worst one-day losses since the COVID-19 pandemic.
The S&P 500 fell 4.85%, the Nasdaq dropped 6%, and the Dow Jones fell 4%.
It marks Nasdaq’s biggest daily percentage drop since March 2020 at the start of COVID, and the largest drop for the Dow Jones since June 2020.
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The latest numbers on tariffs
‘Trust in President Trump’
White House press secretary Karoline Leavitt told CNN earlier in the day that Mr Trump was “doubling down on his proven economic formula from his first term”.
“To anyone on Wall Street this morning, I would say trust in President Trump,” she told the broadcaster, adding: “This is indeed a national emergency… and it’s about time we have a president who actually does something about it.”
Later, the US president told reporters as he left the White House that “I think it’s going very well,” adding: “The markets are going to boom, the stock is going to boom, the country is going to boom.”
He later said on Air Force One that the UK is “happy” with its tariff – the lowest possible levy of 10% – and added he would be open to negotiations if other countries “offer something phenomenal”.
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How is the world reacting to Trump’s tariffs?
Economist warns of ‘spiral of doom’
The turbulence in the markets from Mr Trump’s tariffs “just left everybody in shock”, Garrett Melson, portfolio strategist at Natixis Investment Managers Solutions in Boston, told Reuters.
He added that the economy could go into recession as a result, saying that “a lot of the pain, will probably most acutely be felt in the US and that certainly would weigh on broader global growth as well”.
Meanwhile, chief investment officer at St James’s Place Justin Onuekwusi said that international retaliation is likely, even as “it’s clear countries will think about how to retaliate in a politically astute way”.
He warned: “Significant retaliation could lead to a tariff ‘spiral of doom’ that could be the growth shock that drags us into recession.”
It comes as the UK government published a long list of US products that could be subject to reciprocal tariffs – including golf clubs and golf balls.
Running to more than 400 pages, the list is part of a four-week-long consultation with British businesses and suggests whiskey, jeans, livestock, and chemical components.
Meanwhile, Prime Minister Sir Keir Starmer said on Thursday that the US president had launched a “new era” for global trade and that the UK will respond with “cool and calm heads”.
It also comes as Canadian Prime Minister Mark Carney announced a 25% tariff on all American-imported vehicles that are not compliant with the US-Mexico-Canada trade deal.
He added: “The 80-year period when the United States embraced the mantle of global economic leadership, when it forged alliances rooted in trust and mutual respect and championed the free and open exchange of goods and services, is over. This is a tragedy.”
Donald Trump has announced a 10% trade tariff on all imports from the UK – as he unleashed sweeping tariffs across the globe.
Speaking at a White House event entitled “Make America Wealthy Again”, the president held up a chart detailing the worst offenders – which also showed the new tariffs the US would be imposing.
“This is Liberation Day,” he told a cheering audience of supporters, while hitting out at foreign “cheaters”.
He claimed “trillions” of dollars from the “reciprocal” levies he was imposing on others’ trade barriers would provide relief for the US taxpayer and restore US jobs and factories.
Mr Trump said the US has been “looted, pillaged, raped, plundered” by other nations.
Image: Pic: AP
His first tariff announcement was a 25% duty on all car imports from midnight – 5am on Thursday, UK time.
Mr Trump confirmed the European Union would face a 20% reciprocal tariff on all other imports. China’s rate was set at 34%.
The UK’s rate of 10% was perhaps a shot across the bows over the country’s 20% VAT rate, though the president’s board suggested a 10% tariff imbalance between the two nations.
It was also confirmed that further US tariffs were planned on some individual sectors including semiconductors, pharmaceuticals and critical mineral imports.
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Trump’s tariffs explained
The ramping up of duties promises to be painful for the global economy. Tariffs on steel and aluminium are already in effect.
The UK government signalled there would be no immediate retaliation.
Business and Trade Secretary Jonathan Reynolds said: “We will always act in the best interests of UK businesses and consumers. That’s why, throughout the last few weeks, the government has been fully focused on negotiating an economic deal with the United States that strengthens our existing fair and balanced trading relationship.
“The US is our closest ally, so our approach is to remain calm and committed to doing this deal, which we hope will mitigate the impact of what has been announced today.
“We have a range of tools at our disposal and we will not hesitate to act. We will continue to engage with UK businesses including on their assessment of the impact of any further steps we take.
“Nobody wants a trade war and our intention remains to secure a deal. But nothing is off the table and the government will do everything necessary to defend the UK’s national interest.”
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Who showed up for Trump’s tariff address?
The EU has pledged to retaliate, which is a problem for Northern Ireland.
Should that scenario play out, the region faces the prospect of rising prices because all its imports are tied to EU rules under post-Brexit trading arrangements.
It means US goods shipped to Northern Ireland would be subject to the EU’s reprisals.
The impact of a trade war would be expected to be widely negative, with tit-for-tat tariffs risking job losses, a ramping up of prices and cooling of global trade.
Research for the Institute for Public Policy Research has suggested more than 25,000 direct jobs in the UK car manufacturing industry alone could be at risk from the tariffs on car exports to the US.
The Society of Motor Manufacturers and Traders (SMMT) had said the tariff costs could not be absorbed by manufacturers and may lead to a review of output.
The tariffs now on UK exports pose a big risk to growth and the so-called headroom Chancellor Rachel Reeves was forced to restore to the public finances at the spring statement, risking further spending cuts or tax rises ahead to meet her fiscal rules.
A member of the Office for Budget Responsibility (OBR), David Miles, told MPs on Tuesday that US tariffs at 20% or 25% maintained on the UK for five years would “knock out all the headroom the government currently has”.
But he added that a “very limited tariff war” that the UK stays out of could be “mildly positive”.
He said: “There’s a bit of trade that will get diverted to the UK, and some of the exports from China, for example, that would have gone to the US, they’ll be looking for a home for them in the rest of the world.
“And stuff would be available in the UK a bit cheaper than otherwise would have been. So there is one, not central scenario at all, which is very, very mildly potentially positive to the UK. All the other ones which involve the UK facing tariffs are negative, and they’re negative to very different extents.”