The major item this morning is a seven month extension agreed yesterday in nuclear talks between the P5+1 powers (US, UK, France, Russia, China and Germany) and Iran. The Financial Times emphasises comments made by US Secretary of State John Kerry, who said that Iran had earned the “benefit of the doubt” with “real and substantial progress” having been made. The Daily Mail and Independent i also cover the extension to talks, which the Telegraph describes as a “failure” of diplomacy. In the Guardian, Foreign Secretary Philip Hammond is quoted indicating that the aim is to reach an agreement during the coming three months.

There is plenty of commentary regarding yesterday’s announcement. An editorial in the Telegraph argues that failure to resolve the Iranian nuclear question is further evidence of Washington’s foreign policy impotence. In the Guardian, Simon Tisdall warns that extending negotiations raises the stakes and means that failure to reach agreement would be “all the more cataclysmic.” However, in the Telegraph, Shashank Joshi applauds continued negotiation as the “wiser course” to the alternative and suggests that Iranian positions may be softening.

The Times reports that a Knesset vote on the controversial so-called ‘Jewish State’ bill which has threatened Israel’s coalition government, has been postponed until next week. The Independent also says that Israel’s Attorney General has questioned the wording of the suggested legislation, which would enshrine Israel as a Jewish State and some suggest would denigrate minority communities. Meanwhile, an editorial in the Times describes the bill as “unnecessary,” a measure which “sets an unfortunate tone” and urges Israel’s leaders to “think again,” especially given the current tense climate between Jewish and Arab communities in some parts of the country.

The Telegraph online includes a feature on growing fears among both Jewish and Arab commuters using the Jerusalem light railway, which operates in both Jewish and Arab neighbourhoods of the city. Meanwhile, the Independent i says that three Jewish Israelis are suspected to have attacked a Palestinian in Jerusalem. The report notes that the victim is reportedly in good condition and that police have launched an investigation.

In the Israeli media, the main item remains the so-called ‘Jewish State’ bill. Although a Knesset vote was postponed until next week, the impact of the proposed legislation continues to reverberate. Yediot Ahronot and Haaretz both lead with comments by the US State Department which urged Israel to remain faithful to its democratic principles. The bill is the top item in Israel Hayom, while Maariv reports that Prime Minister Benjamin Netanyahu has said that “time will tell” whether disagreement over the proposal will lead to elections.

The resignation of US Defence Secretary Chuck Hagel is covered prominently by Maariv and Israel Hayom. Commenting in Yediot Ahronot, Alex Fishman says that whoever is chosen to replace Hagel will be just as supportive to Israel. Fishman says that Hagel’s successor will receive instructions from President Obama over “the policy that the United States guarantees Israel’s security.”

Meanwhile, Israel Radio news reports this morning that police made three arrests last night over the stabbing of two Jewish religious seminary students in Jerusalem’s Old City. One of the victims sustained moderate injuries while the other two were lightly wounded.