The Guardian reports Iran has unveiled a new ‘budget to resist US sanctions’ with help from a $5bn Russian loan, presenting a draft state budget of about $39bn (£30bn) to parliament which limits dependence on oil exports. The Financial Times reports that Iran is to reduce its reliance on oil exports by increasing taxes, borrowing more money and cutting energy subsidies, as President Hassan Rouhani vowed on Sunday that the Islamic republic could withstand the pressure wrought by US sanctions.

BBC News reports that the US and Iran have conducted a prisoner swap in a rare sign of co-operation between the two countries. The exchange involved a Chinese-American researcher convicted of spying in Iran and an Iranian scientist held by the US. Both deny wrongdoing. The Times reports the Iranian who was freed by the US has lashed out at America, calling his captors “petty” and saying they had “issues with Iranians”.

The Guardian reports that President Trump said if Jared Kushner cannot achieve peace between Israel and the Palestinians “it can’t be done”. The US President also told the Israeli American Council ‘some Jewish people in the US don’t love Israel enough’ and attacked Ilhan Omar.

In The Guardian, Chris Gunness argues the UN’s fight for Palestinian refugees goes on, but the critical UN Relief and Works Agency (UNRWA) faces ‘unprecedented challenges’ from Israeli hostility and Trump’s withdrawal of US funding.

The Telegraph reports that Israeli aircraft carried out attacks in the Hamas-controlled Gaza Strip early Sunday, Palestinian security officials said, hours after militants in the enclave launched three rockets at the Jewish state.

The Financial Times reports Turkey’s territorial deal with Libya is stoking Mediterranean tensions, as the drawing of new maritime boundaries heightens regional battle for undersea resources.

Reuters reports that Sudan’s prime minister said on Sunday Khartoum had reduced the number of troops it has in Yemen from a peak of 15,000 to 5,000, confirming a drawdown in a conflict which he said could not be solved militarily.

Reuters reports that Lebanon’s leading Sunni Muslim politician, Saad al-Hariri, re-emerged as a candidate for prime minister on Sunday when businessman Samir Khatib withdrew his candidacy to lead a government that must tackle an acute economic crisis.

The Huffington Post reports that Lebanese journalists are facing threats and wide-ranging harassment in their work — including verbal insults and physical attacks, even death threats — while reporting on nearly 50 days of anti-government protests, despite Lebanon’s reputation as a haven for free speech in a troubled region.

Reuters reports that air strikes by Syrian government and Russian forces killed at least 20 people in rebel-held north western Syria on Saturday, activists and the Syrian Observatory for Human Rights said.

The Independent reports that fifteen people have died after gunmen opened fire on a crowd of protesters in Baghdad, according to reports from the Iraqi capital. Protesters fearing for their lives ran from Khilani Square after unknown assailants fired live ammunition from cars.

The Associated Press reports that a top Republican ally of President Donald Trump called for Saudi Arabia to be suspended from an American military training program, after a student pilot from the kingdom shot and killed three sailors at a U.S. naval base in Florida. The Huffington Post reports that national security adviser Robert O’Brien said the U.S. is taking Saudi Arabia “at their word” after the Middle Eastern kingdom agreed to cooperate with the FBI in its investigation of the deadly shooting at a Navy base in Pensacola

The Jewish Chronicle reports that Levana Zamir, an Egyptian-born Jewish activist, has called for greater recognition of Jews from Arab countries, arguing compensation for those forced to flee their homes could help bring peace to the region.

Israeli election looks inevitable: All the Israeli media report the countdown to fresh elections, with low expectations that a deal can be done ahead of Wednesday night’s deadline. The papers report that Blue and White and Likud held talks yesterday to discuss when the next election should take place with disagreements about 25 February being too soon and how to fix a date in March that avoids memorial days and minor religious holidays.

Stormy meeting of Likud Central Committee: All the Israeli media report the stormy Likud Central Committee meeting last night that included jeering and cheering as Gideon Saar seeks to challenge Prime Minister Benjamin Netanyahu for the party leadership. No decision was taken whether to hold a leadership contest, instead they postponed the decision until new elections are confirmed. The meeting did decide that if a repeat election is held the party list for the Knesset slate will remain the same for the next election and there will not be a new primary. Maariv reports that Netanyahu told the crowd,“We are making every effort to avert elections, but if we do hold elections—we will win big-time.” While in his speech, Saar repeated his demand to hold a primary soon: “I am determined to run for Likud leader and to form a government headed by the Likud that will unite the people,’ Saar explained. “In the past, Netanyahu acted on his democratic right to run and on the members’ right to choose who will lead them. It is permitted to run even against someone who has been in power for 20 years.”

Hamas leader arrives in Turkey: Israel Hayom reports that Hamas leader Ismail Haniyeh arrived in Turkey on Sunday as part of the first leg of a foreign tour. This is the first foreign visit by Haniyeh beyond Egypt since he became the head of Hamas in 2017. Haniyeh is also due to visit Malaysia, Russia, Qatar, Lebanon, Mauritania and Kuwait. Before travelling to Turkey, Haniyeh was in Cairo meeting Egyptian officials to discuss efforts to reach a ceasefire with Israel.