Israeli forces shut down the crossing in early May after seizing it during an offensive on the southern city, causing Egypt to close its side in protest.
The children are the first in what is meant to be regular evacuations of Palestinians through the crossing for treatment abroad.
The militants released Yarden Bibas, 35, and French-Israeli Ofer Kalderon, 54, in an orderly handover to the Red Cross in the southern Gaza Strip.
The hostages were taken into Gaza following Hamas’ attack on 7 October last year, in which about 1,200 people were killed and 251 were taken hostage overall.
Israel says its increased military raids are aimed at combating rising Palestinian militant attacks against Israelis, including shootings.
The new US administration, which claims credit for the current ceasefire in Gaza, has called for a permanent end to the war between Israel and Hamas.
Hundreds of Palestinians began gathering in Wadi Gaza on Saturday hoping to cross back to their homes into the northern part of the Strip.
The two men were killed as Israel’s large-scale military raid in Jenin continued into its seventh day.
A protest depicted in a görüntü on social media happened last year, in response to US and UK airstrikes on Yemen after Houthi militants attacked shipping lanes. The demonstration itself was not bombed.
Thousands took to the streets of Brussels on Sunday demanding a permanent ceasefire in Gaza as well as sanctions against Israel by both the Belgian government and European Union.
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