Metro says that Israel is set to release the first of four groups of Palestinian prisoners next week, which Israel’s cabinet agreed to in order to pave the way for direct peace talks to begin. A total of 104 prisoners, many convicted of deadly attacks on Israelis, are scheduled to be released in tandem with progress in peace negotiations. The Independent and i report that Israel’s cabinet yesterday approved a new list of national funding priorities, which included three settlement outposts in the West Bank. Israel’s government explained that the funding relates solely to security costs, not development, although the move drew criticism from some Palestinian leaders.

In an opinion piece in the Independent, Robert Fisk says that the current peace talks have very little chance of success. In the Telegraph, Dominic Raab MP explains the political wisdom behind Israeli Prime Minister Benjamin Netanyahu’s decision to pledge a national referendum on a peace deal and suggests that Prime Minister David Cameron would be wise to do the same thing over Europe.

Meanwhile, the visit of Barcelona football club to Israel and the Palestinian areas of the West Bank, as part of a ‘peace tour’ is covered by the Independent, Times and i. During the course of their two-day visit, Barcelona’s players met Prime Minister Netanyahu and President Shimon Peres.

The swearing in yesterday of Iran’s new President Hassan Rowhani is covered prominently by the Guardian, Financial Times, Telegraph, Independent and Times. All emphasise Rowhani’s pledge of moderation and his request for the West to use the “language of respect” rather than the “language of sanctions” with Iran. The White House said that Rowhani’s election was an “opportunity” to resolve international concerns over Iran’s nuclear programme. However, Israel’s Prime Minister Netanyahu commented that although Iran’s president may have changed, “the aims of the regime have not.” Meanwhile, Metro reports comments made by Rowhani during a meeting with a North Korean official, in which he accused the United States and the West of “seeking an excuse to confront.”

The online edition of the Telegraph covers comments made yesterday by Syria’s President Assad in a rare address to the country’s parliament. He said that the only way to put an end to Syria’s violent conflict is by “striking terror” with an “iron fist.” The Times reports that Assad’s forces are planning to seal off the border with neighbouring Lebanon, which is likely to inflame Sunni-Shi’ite tensions in Lebanon. An editorial in the Times warns of the danger that the Syrian conflict will spread to other parts of the region.

The online editions of the Guardian, Times, Telegraph and Independent cover the increased security threat which has seen United States’ embassies and consulates in the Middle East temporarily closed. Several Congressmen briefed by the US intelligence agencies are quoted emphasising the seriousness of the threat. The Financial Times online reports that the UK and French embassies in Yemen have also been temporarily closed for fear of violence.

The focus of headlines in the Israeli media this morning is a horrific road accident yesterday on Route Six, after a bus and a truck crashed killing four people and injuring dozens. It is the top story in Yediot Ahronot, Makor Rishon and Israel Hayom which declares “Horror on Bus.” Meanwhile, the headline in Maariv is devoted to the Health Ministry’s campaign which begins today to vaccinate an estimated 150,000 children in the south of the country against polio, after strains of the virus were found two months ago. Israel Hayom calls it “Polio Panic” while Israel Radio news says that it will be decided within a week whether to extend the vaccination drive to the entire country.

Meanwhile, the cabinet’s decision on the new list of national funding priorities also features prominently in the headlines. The increased focus on West Bank settlements and the omission of towns in the country’s periphery such as Kiryat Malachi and Kiryat Gat is highlighted in Yediot Ahronot. Makor Rishon also gives the story prominence while Maariv notes the removal of several ultra-Orthodox towns from the list.