There is widespread coverage this morning of Hassan Rowhani’s surprise victory in Friday’s Iranian presidential election. The Financial Times and Times report large crowds which took to the streets in Iran to celebrate the result, with Rowhani considered somewhat critical of Tehran’s clerical regime. The Times and the Telegraph online provide profiles of the little-known new Iranian president, who was reportedly educated in Scotland, speaks multiple languages but is also a cleric who has worked at the heart of the regime since the Islamic Revolution of 1979.

There is plenty of commentary on Rowhani’s victory, generally characterised by cautious optimism that the result could lead to a thawing of Iranian ties with the West. Editorials in the Times and Daily Mirror talk of new, modest hope as does former-Foreign Secretary Jack Straw writing in the Telegraph. In the Guardian, Jon Snow who reported on the vote from Iran argues that the Iranian people want change, while in the same publication Jonathan Steele calls for the United States to alter its’ attitude to Iran in the wake of the election. However, Martin Indyk, former US Ambassador and special assistant to Bill Clinton says in the Financial Times that the West should temper its’ enthusiasm for Rowhani. Meanwhile, the Independent, Telegraph, Daily Mail and Financial Times all report that Israel’s Prime Minister Benjamin Netanyahu has cautioned the West to maintain its’ pressure on Iran over its’ nuclear programme.

The Independent reports that Egypt’s President Mohammed Morsi has cut ties with the Assad government in Damascus and called for Hezbollah to leave Syria, in a decisive statement which is likely to increase Sunni – Shi’ite tensions. The Times says that the opposition umbrella Free Syrian Army has called on the United States to supply weapons via Turkey, while the online editions of the Independent, Guardian and Times cover Russian President Putin’s scolding of the West’s backing for the Syrian opposition during a meeting with Prime Minister Cameron yesterday. Editorials in the Daily Mirror and Telegraph caution against arming opposition groups in Syria, while the Sun warns that the conflict could rage for years to come. In Syria itself, the Independent and its’ sister publication Independent i report that rebel forces are fighting back against government and Hezbollah troops near Aleppo, while the Telegraph online says that Assad’s forces have attacked opposition supply lines in the area.

The Times reports that Israel’s cabinet yesterday approved legislation for preferential treatment in housing and employment to citizens who have completed military or national service. The bill must be approved by the Knesset and is viewed as a measure against Israel’s ultra-Orthodox Jewish sector, which receives widespread exemptions from military and national service, a matter of intense public debate.

In the Israeli media this morning, coverage is similarly focused on the outcome and aftermath of the Iranian presidential election. Yediot Ahronot, Maariv and Makor Rishon focus on the White House’s cautious optimism that Hassan Rowhani’s election could lead to hope of warmer relations with the West. Haaretz juxtaposes this view with Prime Minister Netanyahu’s warning that the West must not delude itself into thinking that Rowhani’s election alters Iran’s attitude or nuclear plans. Israel Hayom headlines with “Prime Minister to West: Have no illusions.” There is significant commentary on the issue, with Alon Pinkas warning in Yediot Ahronot that although Netanyahu had successfully persuaded the world that Iran is not only an Israeli problem, his current approach is in danger of destroying “this achievement and placing Israel in a state of confrontation with the world.”

In other news, Haaretz and Israel Hayom give prominence to the cabinet’s support yesterday for a law which would give housing and employment preference to those who completed military or national service, although Israel’s Attorney General has warned that the bill is not constitutional. Israel Radio news reports that Justice Minister Tzipi Livni is set to issue an appeal on the decision.