Israelis and Palestinians were cheering the swap release of living hostages and prisoners on Monday as both sides celebrated reunions across the border, while US President Donald Trump joined the Knesset, the Israeli parliament, in Jerusalem, marking what he called "the end of war in Gaza".

The Israeli government had confirmed that all 20 living hostages in Hamas' captivity had been freed, while a total of 250 Palestinian prisoners serving life terms were freed as part of the US-backed hostage deal. But Al Jazeera reported that at least 154 Palestinian prisoners being freed on Monday as part of the swap for Israeli captives held in Gaza would be forced into exile by Israel, citing the Palestinian Prisoners' Media Office.

About 2,000 Palestinian prisoners are to be released by Israel in this ceasefire phase. And the bodies of the 28 dead Israeli hostages were also expected to be handed over as part of the deal.

Scenes of emotional moments were streamed online and on social media after all living hostages held by Hamas were freed as part of the ceasefire deal, ending more than two years of atrocities and suffering.

In Ramallah, Palestinian prisoners walked off buses into throngs of welcoming crowds, some rushing forward to hug them.

Trump met with some of the Israeli hostage families at the Knesset before delivering his speech, according to the Hostage and Missing Families Forum.

Trump also thanked the Arab countries for pressuring Hamas and helping set the hostages free.

But as Trump turned to thank US Special Envoy Steve Witkoff, he was interrupted by two members of the Knesset, Ofer Cassif and Ayman Odeh, who, according to Al Jazeera, called for the recognition of Palestine.

Trump said that Gaza will be demilitarized and Hamas disarmed while Israel's security is ensured, adding his hope that more nations will join the Abraham Accords with Israel, among others.

Yet while on board Air Force One en route to Israel, Trump acknowledged that the US was aware that Hamas "is rearming in Gaza" and claimed the group had been given US approval to do so "for a period of time".

Trump said Hamas has "been open about it" and that "we gave them approval for a period of time", adding "you have to understand, they've lost probably 60,000 people", which he said was "a lot of retribution".

The US president also said they wanted to ensure returning residents could rebuild safely, describing Gaza as "literally demolished" and saying" a lot of bad things can happen" as people return.