Palestinians poured onto the streets of Gaza soon after the truce began, while a Hamas official warned its hands āare on the triggerā.
US President Joe Biden said that the ceasefire brought āgenuine opportunityā for progress.
On Thursday more than 100 Israeli airstrikes targeted Hamas infrastructure in the north of Gaza. Hamas retaliated with rocket fire.
Fighting began in Gaza on 10 May after weeks of rising Israeli-Palestinian tension in occupied East Jerusalem that culminated in clashes at a holy site revered by both Muslims and Jews.Ā Hamas began firing rockets after warning Israel to withdraw from the site, triggering retaliatory airstrikes.
At least 232 people, including more than 100 women and children, have been killed in Gaza, according to its Hamas-controlled health ministry. Israel has said at least 150 militants are among those killed in Gaza. Hamas does not give casualty figures for fighters.
The Israeli Political-Security Cabinet said in a statement that it had āunanimously accepted the recommendationā for a ceasefire adding that the political echelon emphasizes that the reality on the ground will determine the continuation of the campaign.
Ā However, a Hamas official that the ceasefire announced by Israel amounts to a āvictoryā for the Palestinian people and a defeat for Israeli Prime Minister Benjamin Netanyahu.
Loudspeakers from mosques pronounced āthe victory of the resistance achieved over the Occupation during the āSword of Jerusalemā battleā.
āWithout justice for Palestinians, without stopping the Israeli aggression and Israeli atrocities against our people in Jerusalem, the ceasefire will continue to be fragile,ā he said.
āItās true that the battle ends today but Netanyahu and the whole world should know that our hands are on the trigger and we will continue to ramp up the capabilities of this resistance,ā he added.
On both sides, survivors and the bereaved from missiles and bombs are not claiming victory. By far the majority of the dead and injured are Palestinians in Gaza, which also suffered hundreds of millions of dollars of physical damage.
Speaking at the White House,Ā US President Joe Biden said he commended Mr Netanyahu in a phone call after the ceasefire agreement was announced.
āThe United States fully supports Israelās right to defend itself against indiscriminate rocket attacks from Hamas and other Gaza-based terrorist groups that have taken the lives of innocent victims in Israel,ā Mr Biden said.
He said the Israeli prime minister shared his appreciation for Israelās US-backed defence system, known as the Iron Dome, āwhich our nations developed together and which has saved the lives of countless Israeli citizens ā both Arab and Jewā.
Mr Biden also praised Egyptās President Abdel Fattah al-Sisi for brokering the ceasefire, before turning to the human cost of the conflict.
āI send my sincere condolences to all the families, Israeli and Palestinian, who have lost loved ones and my hope for a full recovery for the wounded,ā he said.
The president said the US āremains committed to working with the United Nationsā in providing humanitarian assistance to Gaza and in reconstruction efforts in the enclave. He added that this would be done āin full partnership with the Palestinian Authority, not Hamasā.
President Sisi said he had received Mr Bidenās phone call with āutter happinessā, adding that they āexchanged visions around reaching a formula that would calm the current conflict between Israel and Gazaā.
On Wednesday, US President Joe Biden told Mr Netanyahu āthat he expected a significant de-escalation today on the path to a ceasefireā.
Egypt, Qatar and the UN have played leading roles in mediating the ceasefire talks between Israel and Hamas, which rules Gaza.
President Sisi has ordered two security delegations into Israel and the Occupied Palestinian Territories to work towards upholding the ceasefire, according to Egyptian state TV.