The BBC, the Times, the Telegraph, the Independent, the Daily Mail and Bloomberg report on the resignation of Israeli Defence Minister Avigdor Liberman. The BBC reports that Liberman has resigned over the cabinet’s decision to accept a ceasefire ending two days of fighting with Palestinian militants in Gaza. Avigdor Lieberman denounced the move as “surrendering to terror”. He said his right-wing Yisrael Beiteinu party would leave the ruling coalition, which could lead to an early election. The Telegraph reports that Prime Minister Benjamin Netanyahu’s allies said he planned to take over the defence ministry himself, meaning he would simultaneously serve as Israel’s prime minister, defence minister, foreign minister and health minister. However, Naftali Bennett, the leader of the Right-wing Jewish Home party, demanded the defence portfolio for himself and threatened to bring down the government if he was not given the post.  The resignation leaves the government with just a one-seat majority that could collapse if other parties also decide to quit. The Daily Mail reports that Hamas hailed the resignation as a ‘political victory for Gaza’. Sami Abu Zuhri, a Hamas spokesman, said in a statement: ‘Lieberman’s departure is recognition of defeat and failure to confront the Palestinian resistance. Gaza’s steadfastness sent a political shockwave.’ Bloomberg reports that Donald Trump’s hopes to unveil a grand Middle East peace plan his son-in-law has spent almost two years on has been dealt another blow amidst turmoil in Israel. Israeli officials already had been urging the Trump administration not to release its proposal too close to the elections, afraid that a plan demanding concessions from Israel would hurt Netanyahu’s chances when hard-liners already accuse him of being too soft on Hamas, the militant Palestinian group that rules the Gaza Strip.

The Financial Times reports that the failure of Israel’s covert operation in Gaza on Sunday sheds light on Israel’s elite Maglan unit.

Bloomberg reports on the continued aftermath of the murder of Saudi journalist Jamal Khashoggi. Bloomberg reports that Turkish Foreign Minister, Mevlut Cavusoglu is calling for an international investigation to be launched into the murder of Khashoggi. The crime cannot be covered up and a deal can’t be made, the Turkish foreign minister said. “Turkey is not bluffing,” he continued. “We have to share what we have with the international community.”

The Guardian and Reuters report on the fight against the Islamic State in Syria. Reuters reports that the Trump administration hopes that the US-backed fight against the Islamic State in its last foothold in north-eastern Syria will end within months but American forces will remain to ensure the “enduring defeat” of the militant group, a top US diplomat said on Wednesday. Ambassador James Jeffrey, the US special representative for Syria engagement, said the United States believes the way forward in Syria includes defeating the Islamic State, reinvigorating the political process and winding down the long-running civil war. Toward that end, he said, the United States hopes to see the formation of a committee before the end of the year to work on a new constitution for Syria as agreed by the leaders of Russia, Germany, France and Turkey during their meeting in Istanbul in October. The Guardian reports on the evolving legacy of ISIS and extremism in Iraq. In the former Islamic State stronghold of Fallujah, the legacy of extremism lingers in the form of unexploded landmines. Hundreds of the homemade devices are buried in fields, inside war-damaged houses and under roads, forming a densely-packed belt that stretches for 15km and more. Fallujah, says the report is symbolic of a far wider problem.

The Financial Times and Evening Standard report on America’s regional strategy in the Middle East. The Financial Times reports that President Donald Trump’s dream of an Arab NATO is a fantasy and the prospects for military co-operation in the Middle East are fading. The Evening Standard reports that Donald Trump berated Theresa May over Iran in a phone call from Air Force One. The Prime Minster is said to have called the President on Friday as he travelled over from the US to Paris for events marking the centenary of the end of the First World War. According to sources, President Trump berated PM May for not doing enough to contain Iran.

Reuters reports on Israel’s business and economic developments. Reuters reports that the son of Israeli billionaire diamond magnate Lev Leviev is among suspects arrested in Israel in connection with a diamond smuggling scheme, according to court documents released on Tuesday. Separately, Reuters, reports that as Israel approaches an election year, the central bank and analysts have become increasingly worried that the budget deficit is too high and gives the government no room to deal with a potential economic slowdown. The Bank of Israel has expressed concern that the Finance Ministry has set budget deficit targets of 2.9 percent of gross domestic product for the past two years and for 2019, arguing that level makes it hard to reduce public debt.

The Israeli media analyse Defence Minister Avigdor Lieberman’s resignation and his party’s withdrawal from the the coalition. Yediot Ahronot leads with ‘Headed to Elections’ Maariv estimates that ‘Elections Likely Between March and May’.

Maariv reports that “The sense among coalition members last night was that, despite Netanyahu’s efforts to close ranks, the most likely scenario was one in which the Knesset would be dissolved within a few weeks’ time, and elections would be held. One Kulanu official is quoted as saying, “The Knesset will be dissolved within a few weeks. We’re on the way to elections.”

Discussing the resignation, Sima Kadmon in Yediot Ahronoth writes “The question that was asked about his resignation was: why now? The answer is simple: because this is the optimal time. Lieberman, who is one of the most veteran and seasoned political players, smells elections in the offing. He knows that if he wants to survive, he has to distinguish himself from the Likud and position himself to the right of Bennett. The timing of his resignation, against the backdrop of the cease-fire, the uproar in the south and his irrelevancy in all that pertains to Gaza—was the best timing.”

Also in Yediot Ahronot, Nahum Barnea writes that “Now that Yisrael Beiteinu has quit and now that the coalition has been scaled back to 61 MKs, elections need to be held at the closest possible date” adding that “Netanyahu can’t hold onto the three most senior portfolios in the government simultaneously. That’s possible in a transition government on the eve of elections, but not in normal times.”

Ben Caspit in Maariv argues that “it was very difficult yesterday evening to find anyone in the political establishment who would say that elections are far off. Any date between March and May 2019 appears logical. The Netanyahu government is stumbling toward its end.” He adds “If we are indeed headed to elections, then Lieberman’s resignation was brilliant. He gave up power and influence for the sake of the security of Israel’s citizens and for ideological principles. If Netanyahu somehow manages to survive and keep the government going for six months and a bit from now, Lieberman will discover what Moshe (Bogie) Yaalon, Binyamin (Fuad) Ben-Eliezer and Ehud Barak discovered before him, which Ariel Sharon described: anyone who wants to succeed in politics has to stay on the wheel. Lieberman thought that if he did not get off the wheel, he would be trampled beneath it. He will find out if he was right in the next few weeks.”

Kan Radio News reported this morning that security officials have heavily criticised the government and said it failed to make clear at security cabinet meetings what its policy was and what objective the military actions were meant to serve. The officials also said that Defence Minister Lieberman’s resignation had revealed the truth about the political establishment. They said that the security cabinet meetings had become part of the political game and were of no value.

Kan Radio News also reports claims in the Lebanese Al-Akhbar newspaper that Hamas has arrested a number  of people whom it suspects of aiding the special Israeli forces team that entered the Gaza strip on Sunday evening.

Maariv reports a that PM Netanyahu explained the Gaza ceasefire decision in a speech at the memorial for David Ben-Gurion. “In normal times, a leader has to be attentive to the people’s heartfelt desires, and we have a wise people. But in times of emergency, in times of fateful decisions about security, the public sometimes can’t be party to the decisive considerations that have to be carefully hidden from the enemy. In those moments, leadership isn’t doing the easy thing; leadership is doing the right thing, even if it is hard. Leadership is sometimes facing criticism, when you know confidential and sensitive things that you can’t share with the citizens of Israel, and in this case it is the residents of the south, whom I love and value so much.” At a press conference held in the Knesset., Chairman of the Zionist Union Avi Gabbay said yesterday “A government I head won’t talk with Hamas and won’t reach deals with it but, rather, will enlist all of the regional and international players to seriously and courageously deal with the terrorism out of Gaza,”

Mako reports a poll commissioned by Hahadashot which found that, for the first time since March, the Likud would receive fewer than 30 seats if elections were held today. Furthermore, 74% of the public is displeased with Netanyahu’s performance in the last round of violence with Hamas.

Likud would receive 29 seats, Yesh Atid 18 seats, the Joint List 12 seats, the Zionist Union 11 seats, the Jewish Home 11 seats, Kulanu 8 seats, UTJ and Yisrael Beiteinu 7 seats each, Shas and Meretz 6 seats each, and Orly Levy-Abekasis 5 seats. The poll also found that former defence minister Moshe (Bogie) Yaalon has continued to hover at the election threshold with 3.1%.

Haaretz reports on the results of the second round of the mayoral elections, arguing that despite the victory of Moshe Lion in Jerusalem it is “too early to eulogise secular Jerusalem” and that in elections in Arab towns “Business-people fared better than clans and alliances”

Kan Radio News reports that four policemen sustained light injuries last night while grappling with an assailant who tried to carry out a stabbing attack at a police station in the Armon Hanatziv neighbourhood. The perpetrator infiltrated the police station after climbing over the fence and stabbed one policeman. Another policeman was injured by shots that were fired at the assailant.