Hamas war is being tested as complex issues remain a day after widespread jubilation over the return to Israel of the last 20 living hostages held in Gaza and the release of hundreds of Palestinian prisoners in exchange.

Israeli soldiers killed several Palestinians in northern Gaza on Tuesday, a day after US President Donald Trump touted the end of the two-year war in the coastal enclave on a whistle-stop visit to the Middle East.

As Israel and Hamas implement the first phase of a Gaza peace plan, questions remain unanswered over what comes next.

Cheers, cries and Hebrew songs rang out in Tel Aviv as Israel confirmed that the hostages held by Hamas returned home.

Israel's military said it opened fire on "several suspects" who were spotted crossing a boundary that troops pulled back to under the ceasefire deal.

Some Palestinians in the Gaza Strip, where Israel has for two years waged a brutal and systematic war against Hamas, are returning home and beginning to reckon with the destruction caused by the conflict.

US President Donald Trump demanded that Hamas return the bodies of deceased hostages and threatened the militant group with retaliation if it does not lay down its arms.