President Donald Trump is on his way to Israel and Egypt to take part in a ceremony to commemorate the signing of the ceasefire agreement.

The Gaza peace talks began in Egypt's Red Sea resort of Sharm El Sheikh with delegations from Egypt, Qatar and the United States as intermediaries.

A video from the Israeli foreign ministry verified by Reuters showed the most prominent of the flotilla's passengers, Swedish climate campaigner Greta Thunberg, sitting on a deck surrounded by soldiers.

It comes as Israel waits for Hamas to release the hostages ahead of Monday's deadline, PM Netanyahu says "tomorrow is the beginning of a new path".

The Israeli military intercepted the last boat in an aid flotilla attempting to reach blockaded Gaza on Friday, a day after stopping most of the vessels and detaining some 450 activists including Swedish campaigner Greta Thunberg.

Watch live as Israeli hostages are released by Hamas as part of Donald Trump's ceasefire deal on Monday, 13 October.

The Israeli military has intercepted a nine-boat flotilla in the Mediterranean Sea trying to break Israel's naval blockade of Gaza and detained scores of activists on board.

Hamas is expected to release all living hostages within days, while Israel will free about 2,000 Palestinian prisoners and begin withdrawing most forces from Gaza.

Cameras broadcasting live feeds from the boats, verified by Reuters, showed armed Israeli soldiers sporting helmets and night vision goggles boarding the ships, while passengers huddled together in life vests with their hands up.

International media outlets have been banned from Gaza, save for tightly controlled embeds. Local reporters have been threatened and killed. But as the world awaits peace, the Israeli government has invited some content creators to come in and spread its message.

GAZA/TEL AVIV (Reuters) -Thousands of Palestinians streamed north along the coast of Gaza on Saturday, trekking by foot, car, and cart back to their abandoned homes as a ceasefire between Israel and Palestinian militant group Hamas appeared to be holding.