US President Donald Trump has told cheering Israeli lawmakers that this is the historic dawn of a new Middle East, after helping to broker a ceasefire between Israel and Hamas in Gaza.

During the first such address by a US president since 2008, Trump said Monday was a day of profound joy after two harrowing years.

Trump's address to the Israeli parliament, the Knesset, comes on the day that the last 20 living hostages held in the Palestinian enclave were released by Hamas.

Israel is releasing 250 Palestinian prisoners and more than 1,700 other Palestinians detained during the two-year military operations in Gaza.

During a whirlwind trip to the region, Trump is also expected to attend a peace summit in Sharm El-Sheikh, Egypt, alongside Egyptian President Abdel Fattah al-Sisi and other world leaders.

After hearing politicians' chants of Trump, Trump, Trump in the Knesset, the American president said the occasion would represent not only the end of a war but also the possibility of a new age for what will soon be a magnificent region.

Trump’s suggestion that the region was on the dawn of a new era echoed the words he used when Israel signed landmark deals with several Arab states during his first presidency.

Trump was introduced to parliament by Israeli Prime Minister Benjamin Netanyahu, who saluted his counterpart's various acts of solidarity with Israel. Netanyahu stated Trump was the greatest friend Israel had ever had in the White House.

Trump went on to offer a tribute of his own to his counterpart, saying: He's not the easiest guy to deal with, but that's what makes him great.

Earlier, Trump declared the war is over in Gaza after two years of fighting, as he flew to the region from the US on board Air Force One. The ceasefire took effect after both parties agreed to the first phase of Trump's 20-point peace plan.

The response in the Knesset included applause and enthusiasm, with members wearing red caps reading Trump the Peace President. The atmosphere was charged with optimism, despite some lawmakers absent due to differing views on the continuation of military operations.