For the Palestinians, the agreement means an end to Israeli airstrikes and assassinations of wanted militants.

For Israel, it brings a stop to rocket fire and attempts at cross-border incursions from Gaza.

What's next: After a 24-hour cooling-off period, it calls for "opening the crossings and facilitating the movement of people and transfer of goods, and refraining from restricting residents' free movement." Egypt will act as sponsor of the agreement.