Yesterday’s agreement between Israeli and Palestinian representatives to re-start substantive peace talks within the coming two weeks for at least a nine month period is covered widely this morning. The Times, Telegraph, Guardian, Independent and Evening Standard all report the announcement made yesterday in Washington, during which US Secretary of State John Kerry confirmed that the goal of the renewed talks would be to reach a final agreement to end the conflict and that all issues are to be discussed. Israel’s Justice Minister Tzipi Livni and Palestinian negotiator Saeb Erekat also spoke at the press conference, expressing hope that a final accord will be reached.

In the Telegraph, Damien McElroy outlines the pertinent issues for both Israel and the Palestinians which will need to be resolved. Meanwhile, in the Financial Times, David Gardner says that the talks must primarily ensure the end of Israel’s occupation in the West Bank. In the same publication, Ben Judah argues that if the talks fail, the European Union (EU) should boycott goods from Israeli settlements in the West Bank in a bid to shake Israelis from their “escapism.”

The Guardian, Independent, Independent i and the online edition of the Financial Times all cover the visit of EU foreign affairs chief Catherine Ashton to Egypt where she yesterday visited ousted premier Mohammed Morsi in an undisclosed detention facility. Ashton confirmed that Morsi is alive, well and aware of developments in Egypt. However, the Guardian reports that protests and unrest continue and that Ashton is no closer to helping bring about a resolution between the country’s military and Morsi’s supporters.

The Times says that in Iran, Ayatollah Ali Khamenei has vetoed four proposed appointments in the cabinet of new President Hassan Rowhani. These include Rowhani’s preferred choice for Defence Minister and Intelligence Minister. The veto, says the Times, is Rowhani’s “first bruising at the hands of religious hardliners.”

The announcement in Washington yesterday that final status peace talks will begin within the next two weeks is the dominant story. Israel Hayom’s headline states “Kerry: Everything is on the table,” while Yediot Ahronot describes it as an “Optimistic start to resumed peace negotiations.” The story is also covered prominently in Haaretz, while Maariv claims that Prime Minister Netanyahu reached an agreement with Jewish Home that permission would be given to build 1,000 homes in major West Bank settlement blocs over the coming months, in exchange for coalition unity following Sunday’s cabinet decision to release 104 Palestinian prisoners. Maariv also says that Israeli and Palestinian leaders have agreed to conduct the bulk of negotiations without the presence of an American representative.

Yediot Ahronot and Israel Hayom also devote coverage to the possible presence of polio in southern Israel, after remnants of the virus were discovered in the sewage system in the Bedouin town of Rahat two months ago. Both outlets report that Israel’s Health Ministry is preparing to vaccinate 200,000 children in the area.

Meanwhile, Israel Hayom also includes a prominent item on the search for a new Governor of the Bank of Israel after Jacob Frenkel’s dramatic withdrawal of his candidacy. The report speculates that a decision will be made over the coming few days.