The temporary ceasefire began at 8:00 a.m. local time (0500 UTC) on Tuesday. Minutes before it began Israeli army spokesperson Lieutenant-Colonel Peter Lerner told reporters that the army would withdraw completely from the Gaza Strip.

Lerner said the troops will redeploy to the Israeli side of the border in defensive positions.

He said the move comes as Israel has completed the destruction of all cross-border tunnels built by Islamic militants.

Shelling on both sides, however, continued minutes up until the ceasefire began. Air raid sirens sounded in Jerusalem and Tel Aviv as Hamas militants fired a barrage of rockets at southern and central Israel.

Similarly, in Gaza, Israel staged several air raids shortly before the truce began.

Both sides agreed to the deal Monday after two days of talks in Cairo between Israel and Palestinian groups, including Hamas and the Palestinian Authority, which governs the West Bank.

A similar Cairo-brokered truce was rejected by Hamas three weeks ago. The group said it didn't take part in the negotiations that led to the proposal and said Israel must end its blockade of Gaza as a condition to any ceasefire. Egypt, whose current government opposes Hamas, is set to host further talks aimed at a longer truce while the latest one is in effect.

Gaza officials say the war has killed nearly 1,900 Palestinians, most of them civilians. Israel says 64 of its soldiers and three civilians have been killed since fighting began on July 8 after a surge in cross-border rockets from Gaza into Israel

Ceasefire praise

The United States hailed Tuesday's ceasefire, but said it was up to Hamas to maintain the truce. On Monday, President Barack Obama signed into law legislation that provides $225 million (168 million euros) in funding for Israel's Iron Dome missile defense system.

"We hope this will secure a permanent ceasefire and restore stability," the Egyptian Foreign Ministry said in a statement.

After the ceasefire was announced, United Nations Secretary-General Ban Ki-moon urged both sides to "commence, as soon as possible, talks in Cairo on a durable ceasefire and the underlying issues."

The UN is due to meet in a full General Assembly on Wednesday to hear top officials report on the crisis.

hc/lw (Reuters, AFP, AP)