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Netanyahu says he will continue to insist on maintaining an Israeli presence along Gaza's border with Egypt as part of any cease-fire deal.
Israel has previously insisted it will keep fighting until Hamas is destroyed, which could complicate the proposal Biden laid out.
Dutch authorities were "exceptionally happy" that there was a peaceful ending after four people were held hostage for hours.
Gadi Haggai was captured by Hamas on Oct. 7 along with his wife, Judi Weinstein, who allegedly remains in the militant group's custody.
WHAT'S HAPPENING
President Joe Biden has hosted family members of some of the eight Americans believed still held captive in Gaza, assuring them his administration won't stop working to get their loved ones home.
Israeli news outlets reported on a tense meeting between Israeli officials and freed hostages.
The late-night exchange was held up for several hours after Hamas accused Israel of violating the agreement.
Hamas released the first batch of hostages under a cease-fire deal that began Friday, including 13 Israelis and 12 Thai nationals.
The Palestinian militant group captured hundreds of people, including U.S. citizens, during its Oct. 7 attack on Israel.
Relatives are lobbying Congress as CIA Director Bill Burns is in the Middle East and reports swirl of a potential hostage release.