What does the ceasefire agreement mean for Israel, Hamas and the Middle East?

Palestinian children play next to a building destroyed by Israeli army strikes. Picture: Abdel Kareem Hana/AP

Mediators say Israel and Hamas have agreed to pause the fighting in Gaza, starting on Sunday, after 15 months of war and to begin exchanging dozens of hostages held there for Palestinians imprisoned by Israel.

Israeli prime minister Benjamin Netanyahu had yet to confirm that the deal had been finalised.