Israel’s army will 'advance readiness' for first phase of Trump plan to release hostages

Israel’s military is advancing preparations for the first phase of the "Trump plan" to release hostages from Gaza, following Hamas's reported agreement to the proposal. Former President Trump, who is spearheading the initiative, stated a deal is "very close," imposed a Sunday 6 PM deadline for Hamas, and noted Israel has temporarily ceased bombing. This development suggests a potential de-escalation in the conflict, with the IDF adopting a defensive-only posture, though the successful implementation remains contingent on Hamas's compliance and the broader peace framework.

Analysis

Israel’s military announced Saturday it will "advance readiness for the implementation of the first phase of the Trump plan" for the release of hostages from the Gaza Strip. The development comes after Hamas on Friday said it agreed to release all Israeli hostages, dead or alive, as part of President Donald Trump's Gaza peace proposal. Trump later posted a video from the White House Oval Office saying he is still awaiting final word but that he believes he is "very close" to achieving a peace deal. "The Chief of the General Staff convened a special situation assessment in light of recent developments. In accordance with the directives from the political echelon, the Chief of the General Staff [was] instructed to advance readiness for the implementation of the first phase of the Trump plan for the release of the hostages," Israel Defense Forces posted on X. "At the same time, it was emphasized that the safety of IDF troops is a top priority and that all IDF capabilities will be allocated to the Southern Command to ensure the protection of the troops," it added. "The Chief of Staff noted that, given the operational sensitivity, all troops must maintain high alertness and vigilance, in addition to reinforcing the need for a rapid response to neutralize any threat." HAMAS AGREES TO RELEASE ALL ISRAELI HOSTAGES OUTLINED IN TRUMP GAZA PEACE DEAL: REPORT An official told The Associated Press that Israeli troops have now moved into a defensive-only position inside the Gaza Strip and will not actively strike. The official also said no IDF assets have been taken out of the region. "I appreciate that Israel has temporarily stopped the bombing in order to give the Hostage release and Peace Deal a chance to be completed. Hamas must move quickly, or else all bets will be off," Trump wrote on Truth Social on Saturday. "I will not tolerate delay, which many think will happen, or any outcome where Gaza poses a threat again. Let’s get this done, FAST. Everyone will be treated fairly!" Last week, Trump unveiled a 20-point peace plan calling for an end to Israel’s military operations, the disarmament of Hamas and the reconstruction of the Gaza Strip under a Palestinian governing body overseen by an international coalition led by the U.S. TREY YINGST: HAMAS MUST ACCEPT TRUMP PEACE PLAN TO END WAR ONCE AND FOR ALL "THIS DEAL ALSO SPARES THE LIVES OF ALL REMAINING HAMAS FIGHTERS! The details of the document are known to the WORLD, and it is a great one for ALL! We will have PEACE in the Middle East one way or the other. The violence and bloodshed will stop," Trump wrote on Truth Social Friday. CLICK HERE TO GET THE FOX NEWS APP "RELEASES THE HOSTAGES, ALL OF THEM, INCLUDING THE BODIES OF THOSE THAT ARE DEAD, NOW! An Agreement must be reached with Hamas by Sunday Evening at SIX (6) P.M., Washington, D.C. time. Every Country has signed on!" Trump added. "If this LAST CHANCE agreement is not reached, all HELL, like no one has ever seen before, will break out against Hamas. THERE WILL BE PEACE IN THE MIDDLE EAST ONE WAY OR THE OTHER." Fox News Digital’s Alexandra Koch and Jasmine Baehr contributed to this report. A potential de-escalation in the Gaza conflict is underway, driven by a peace and hostage-release proposal reportedly brokered by former U.S. President Trump. The Israeli military has confirmed it is advancing readiness for the plan's first phase after Hamas reportedly agreed to its terms, which include the release of all hostages. This has led to an immediate operational shift, with the IDF moving to a "defensive-only position" and temporarily halting bombing operations, a tangible sign of reduced immediate conflict. However, the situation is characterized by high uncertainty and significant risk, reflected in the cautious tone and high market impact score (0.7). The deal's success hinges on a final agreement being reached by a strict deadline of Sunday at 6 PM D.C. time, as stipulated by Trump. The binary nature of the outcome is underscored by his warning of unprecedented escalation against Hamas should the deadline be missed. This geopolitical development carries substantial market implications, where a successful resolution would likely reduce the geopolitical risk premium in oil prices and support broader risk assets, while a failure would almost certainly trigger a significant flight to safety.

Key Decisions for Investors

• Investors should prepare for heightened market volatility, particularly in energy prices and defense-related equities, surrounding the Sunday deadline, as the outcome is binary between significant de-escalation and severe conflict intensification.
• A successful deal would likely reduce the geopolitical risk premium, pressuring oil prices and defense stocks, while a failure would have the opposite effect, warranting a review of portfolio exposure to these sectors.
• Action should be predicated on official confirmation of a finalized agreement from all parties involved, as the current situation remains highly fluid and subject to failure despite the positive initial reports.