Israel is to ease restrictions on its two crossings into Gaza to allow greater movement of people and goods under terms of a ceasefire agreement that ended the 50-day conflict.

Erez which lies at Gaza's northern edge is a personnel crossing, while Kerem Shalom, which lies at the southernmost point of the Gaza-Israel border, is the only transit point for aid and goods coming from Israel.

Vital humanitarian aid poured into Gaza on Thursday as residents began rebuilding their lives following a devastating 50-day war between Israel and Hamas that experts say left no winners.

Millions in and around the war-torn coastal enclave were enjoying a second day of peace after the guns fell silent following a permanent ceasefire agreement that conditioned the easing of Israel-imposed goods and movement restrictions on the territory.

"She will call me Daddy and Mummy," insisted 11-year-old Amir Hamad, cradling his infant sister in his arms after the Gaza war left him and his four siblings orphans.

Fifty days of bloody fighting in and around the wartorn Gaza Strip has cost the lives of nearly 500 children, but it has also turned hundreds more into orphans, who face a future deprived of their parents' love.

The European Union on Wednesday welcomed a long-term ceasefire in Gaza after the worst fighting between Israel and the Palestinians in a decade, calling for more talks to bring a lasting end to the conflict.

While praising the Egyptian government for its mediation efforts in bringing an end to 50 days of violence, it called for a "comprehensive and sustainable agreement" to follow.

A truce deal between Israel and Hamas may have ended 50 days of bloodshed in Gaza but it also exposed a clear split within Prime Minister Benjamin Netanyahu's ruling coalition.

The ceasefire, effective from 1600 GMT on Tuesday, was accepted by Netanyahu following consultations with his Defense Minister Moshe Yaalon, press reports said.

A United Nations humanitarian aid convoy crossed into Gaza from Egypt on Wednesday for the first time since a blockade was introduced on the territory in 2007.

The World Food Program (WFP) said the convoy, which entered Gaza through the Rafah crossing, carried enough food to last 150,000 people for five days.

Shopkeepers reopened and fishermen put out to sea on Wednesday as Gaza's 1.8 million people breathed a collective sigh of relief after a truce ended 50 days of bloodshed.

For the most part, there was a sense of hope on the streets after the surprise ceasefire came into force at 1600 GMT on Tuesday, ending seven weeks of violence which killed more than 2,140 in Gaza and 70 on the Israeli side.

Key Hamas backer Qatar hailed a Tuesday ceasefire that ended seven weeks of conflict in and around Gaza and offered to throw its huge gas earnings behind reconstruction efforts.

Qatar, which hosts the Palestinian Islamist movement's exiled leader Khaled Meshaal, paid tribute to the "resistance and the sacrifices" of the Palestinians in 50 days of conflict with Israel.

Life in Gaza resumed some semblance of normality Wednesday as a long-term truce took hold following a deal hailed by Israel and Hamas as "victory" in the 50-day war.

Millions in and around the war-torn enclave enjoyed a welcome night of peace during which there were no strikes on Gaza, nor Palestinian rockets fired at Israel, the Israeli army said.

Several senior Hamas and Islamic Jihad leaders appeared in public on Tuesday shortly after a Gaza truce took hold, the first time they had done so since the conflict began on July 8.

Among them was Mahmoud al-Zahar, a senior member of the Hamas political wing, and senior Jihad official Mohammed al-Hindi, who gave a rousing victory speech to thousands of people gathered in a square in Gaza City's Rimal neighborhood.