UPDATE 3-Hamas response to Trump plan wins hardline support, boosting hostage release hopes

* Islamic Jihad move could facilitate release of hostages * Israel strikes Gaza after Trump calls for end to bombardment * Trump plan and Hamas response lift spirits of Palestinians (Adds comment from Palestinian in paragraph 7, new overall death toll in paragraph 24) By Nidal al-Mughrabi and Mahmoud Issa CAIRO/GAZA, Oct 4 (Reuters) – Palestinian Islamic Jihad, a hardline ally of Hamas that also holds hostages, on Saturday endorsed the group's response to a U.S. plan to end the war in Gaza – a move that could help pave the way for the release of Israelis still held by both parties. Hamas, the Palestinian militant group that controls Gaza, on Friday accepted certain key parts of U.S. President Donald Trump's plan, including ending the war, Israel's withdrawal and the release of Israeli hostages and Palestinian captives. Hamas's response triggered a chorus of optimistic statements by world leaders urging an immediate cessation of the deadliest conflict involving Israel since its creation in 1948, and freedom for the remaining Israelis held in the tiny enclave. A further possible boost to hopes for peace came with a supportive statement from Iran-backed Islamic Jihad, which is smaller than Hamas but seen as more hardline. PALESTINIANS LOOK FOR 'RAY OF HOPE' AFTER HAMAS RESPONSE "Hamas' (reaction) to Trump's plan represents the position of the Palestinian resistance factions, and the Islamic Jihad participated responsibly in the consultations that led to this decision," the group said. Hamas' stance, and its backing by Islamic Jihad, may raise the spirit of Gazans, who had watched one ceasefire effort after another fail as Israeli strikes hit the strip over the past two years, creating a humanitarian crisis and displacing millions. "May the suffering lift off the people of Gaza, the people of Gaza are among the oppressed of the earth, and any ray of hope for the oppressed people is a victory," said Sharif al-Fakhouri, resident of the occupied West Bank city of Hebron. Other Palestinians were cautious, expressing fear that Prime Minister Benjamin Netanyahu, who heads the most far-right government in Israel's history, will ultimately withdraw from any plan to end the war. "What is important is that Netanyahu does not sabotage this, because now that Hamas agreed, Netanyahu will disagree, as he usually does," said Jerusalem resident Jamal Shihada. The Israeli military's Arabic spokesperson issued a warning on Saturday for residents of Gaza City, saying it remained a "dangerous" combat zone. He urged residents in a post on X to avoid going north in the enclave or nearing any areas where the military operates. News website Axios earlier reported that the Israeli military would shift to defensive operations in Gaza and halt its plan to seize Gaza City. Israeli airstrikes persisted early on Saturday but they were less intense, after U.S. President Trump had called for a halt to the bombing saying Hamas was ready for peace. In its daily update, the Gaza health ministry said Israeli fire killed at least 66 Palestinians across the enclave in the past 24 hours. WORLDWIDE SUPPORT FOR END TO 'TERRIBLE WAR' Netanyahu's office said early on Saturday that Israel was preparing for an "immediate implementation" of the first stage of Trump's Gaza plan for the release of Israeli hostages following Hamas' response. Shortly after, Israeli media reported that the country's political echelon had instructed the military to reduce offensive activity in Gaza. Trump's plan and Hamas' reaction won support around the world, from Australia to India to Canada and European capitals. "An end to this terrible war is within reach," said Dutch Prime Minister Dick Schoof. The Israeli military chief of staff instructed forces in a statement to advance readiness for the implementation of the first phase of Trump’s plan, without mentioning whether there would be reduction of military activity in Gaza. Hamas responded to Trump's 20-point plan after the U.S. president gave the group until Sunday to accept or face grave consequences. Trump, who has cast himself as the only person capable of achieving peace in Gaza, has invested significant political capital in efforts to end the war that has left U.S. ally Israel increasingly isolated on the world stage. Trump said on Friday he believed Hamas had shown it was "ready for a lasting PEACE" and he put the onus on Netanyahu's government. "Israel must immediately stop the bombing of Gaza, so that we can get the Hostages out safely and quickly!" Trump wrote on his Truth Social platform. Domestically, the prime minister is caught between growing pressure to end the war — from hostage families and a war-weary public — and demands from hardline members of his coalition who insist there must be no let-up in Israel’s campaign in Gaza. Israel began attacking Gaza after the October 7, 2023, Hamas-led attack on Israel in which some 1,200 people were killed and 251 taken hostage, according to Israeli tallies. Israel says 48 hostages remain, 20 of whom are alive. Israel's campaign has killed more than 67,000 people in Gaza, most of them civilians, according to Gaza health authorities. Its assault has destroyed much of the strip while aid restrictions have triggered a famine in parts of Gaza. (Additional reporting by Mohammed Torokman and Mussa Qawasma; Writing by Michael Georgy; Editing by Susan Fenton, William Maclean)

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