Hamas said it is ready to release US-Israeli Edan Alexander, the last known living American hostage held in Gaza.
Mr Alexander has held by Hamas since the attacks on southern Israel on October 7, 2023.
"The release of Israeli soldier Edan Alexander, who holds dual US citizenship, will be part of the efforts being made to achieve a ceasefire, open the crossings, and allow aid and relief to reach our people in the Gaza Strip. The movement affirms its readiness to do so," Hamas negotiator Khalid Al Hayya said.
Hamas indicated that the release will be a show of good faith that it is ready to immediately start intensive negotiations, and exert serious efforts to reach a final agreement to end the war.
On his social media platform, Truth Social, US President Donald Trump welcomed the announcement.
"Hopefully this is the first of those final steps necessary to end this brutal conflict," he posted.
"I look very much forward to that day of celebration!"
A statement from Israeli Prime Minister Benjamin Netanyahu's office confirmed part of the initial reports.
"The United States has informed Israel that this move is expected to lead to negotiations for the release of the hostages under the original [US envoy Steve] Witkoff outline – which Israel has already accepted," it read.
"Israel is preparing for the possibility that this move will materialise."
Social media posts from mediators in Qatar and Egypt welcomed the announcement from Hamas.
Israel's punishing campaign in Gaza – which followed the October 2023 attacks by Hamas-led fighters, resulting in the deaths of about 1,200 people and the capture of 240 hostages – has killed more than 52,800 Palestinians in Gaza and injured about 119,554.
Why it pays to compare
A comparison of sending Dh20,000 from the UAE using two different routes at the same time - the first direct from a UAE bank to a bank in Germany, and the second from the same UAE bank via an online platform to Germany - found key differences in cost and speed. The transfers were both initiated on January 30.
Route 1: bank transfer
The UAE bank charged Dh152.25 for the Dh20,000 transfer. On top of that, their exchange rate margin added a difference of around Dh415, compared with the mid-market rate.
Total cost: Dh567.25 - around 2.9 per cent of the total amount
Total received: €4,670.30
Route 2: online platform
The UAE bank’s charge for sending Dh20,000 to a UK dirham-denominated account was Dh2.10. The exchange rate margin cost was Dh60, plus a Dh12 fee.
Total cost: Dh74.10, around 0.4 per cent of the transaction
Total received: €4,756
The UAE bank transfer was far quicker – around two to three working days, while the online platform took around four to five days, but was considerably cheaper. In the online platform transfer, the funds were also exposed to currency risk during the period it took for them to arrive.
Countries recognising Palestine
France, UK, Canada, Australia, Portugal, Belgium, Malta, Luxembourg, San Marino and Andorra
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Tokenisation refers to the issuance of a blockchain token, which represents a virtually tradable real, tangible asset. A tokenised asset is easily transferable, offers good liquidity, returns and is easily traded on the secondary markets.