Netanyahu orders Israeli officials to return from Qatar as truce talks collapse – latest news
Keren Schem sobbed as she took a phone call confirming her daughter Mia Schem, 21, was to be released.
The 7am deadline was the agreed time at which hostilities would resume if there were no agreement for further hostage releases.
More than 178 people have been killed since the bombing restarted yesterday, according to the Hamas-run health ministry, and the Israeli military says it has struck more than 400 targets.
Meanwhile Israeli intelligence officers have been ordered to leave Qatar after ceasefire negotiations in the country reached a ‘dead end’.
Israel has also dropped leaflets urging residents in some areas of southern Gaza to leave and head further south to Rafah, near the Egypt border.
Sirens were also heard in parts of Israel yesterday, with rockets fired from Gaza intercepted.