Hamas gunmen have paraded and released three Israeli hostages, bringing an end to their nightmare of captivity in Gaza.

According to Hamas and Israel, the hostages are Eli Sharabi, 52, Ohad Ben Ami, 56, and Or Levy, 34. There is now an expectation 183 Palestinian prisoners will be freed in return as part of a deal.

All the freed Israeli hostages were abducted during the Hamas-led terror attack on Israel on October 7, 2023, that saw 1,200 people killed.

It will be the fifth swap of hostages for prisoners since the ceasefire began on January 19. Eighteen hostages and more than 550 Palestinian prisoners have already been freed in that time.

Observers were concerned US President Donald Trump’s stunning proposal to transfer the Palestinian population out of Gaza could have imperiled the fragile deal.

The ceasefire paused the 15-month war in the Gaza Strip where Israel’s retaliatory attack has killed more than 47,000 people, over half of them women and children, according to Gaza’s Health Ministry.

Emotional images emerged this morning showing close relatives of the freed hostages reacting with tears and joy as the horror of the ordeal for the three men came to an end.

The family of released hostage Eli Sharabi, whose wife and two daughters were killed during the October 7 Hamas atrocity, hugged one another and waved the Israeli flag as they watched Mr Sharabi walk free.

The joyful scene was quickly replaced with tension, worry and crying as the relatives took in Mr Sharabi’s appearance, who looked gaunt and frail after 16 months in captivity.

As Mr Sharabi was led to the vehicles of the Red Cross, they again jumped and shouted and sang a Jewish prayer meant to note special occasions.

Kathy Barby, a relative, said: “He doesn’t look good. It is mixed feelings. We are happy he is on his feet. He is alive.”

In a central Tel Aviv square, dubbed “Hostages Square” because it has become a centre for protests from hostage families, supporters, carrying posters of other hostages yet to be freed from captivity, chanted: “Bring them home!”

Michael Levy, Or Levy’s brother, said his three-year-old nephew, Almog, already knows that his father was on his way.

Michael said the family had told Almog that his mother, who was killed on October 7, was not returning but that they were searching for his father.

In an interview with Israeli Channel 12, Mr Levy said he told the boy “Mogi, we found daddy”, adding that: “We haven’t seen happiness like that in him for a long time.”

Osnat Sharabi Matalon, Mr Sharabi’s sister, told the news channel the family was stunned that he was finally being freed.

She said: “Until we see, touch and hug him, it feels like it isn’t happening.”

Mr Sharabi’s extended family gathered at a home in Tel Aviv to watch the release live. Relatives jumped and cheered in anticipation.

Members of Kibbutz Beeri, from where Mr Sharabi and third hostage Ohad Ben Ami are from, gathered with Israeli flags and posters welcoming the two hostages back.