The Guardian covers Israel’s release of 26 long-term Palestinian prisoners late Tuesday night, as part of a commitment made to the Palestinian Authority (PA) paving the way to restart peace talks in July. The Independent also reports the release. The Evening Standard’s coverage of the release includes prominent photos of the freed prisoners being greeted by jubilant Palestinian crowds. The Guardian online includes an extensive item highlighting the internal Israeli political tensions generated by the prisoner release.

The announcement by Israel’s government, immediately following the release, that existing plans for construction in areas of Jerusalem beyond the pre-1967 borders are to be accelerated, is covered by the Times, Daily Mail, Independent i and the online edition of the Telegraph. All reports highlight Palestinian opposition to the announcement.

The Times reports Iran’s Supreme Leader, Ayatollah Khamenei could be in ill health, as he has not been seen in public for three weeks, missing several events at which his attendance would be expected. The report says Khamenei’s ill health is being openly discussed in Iran and there is no clear successor in place should he become incapacitated, fuelling fears of a power vacuum.

The Times and the online editions of the Telegraph and Financial Times say the last wanted senior Muslim Brotherhood leader in Egypt has been apprehended by authorities in Cairo. Essam el-Erian was vice president of the organisation’s political wing; his arrest comes just days before other senior Muslim Brotherhood leaders, including Mohammed Morsi are due to go on trial. In the Financial Times, an editorial argues that Egypt’s de facto ruler General al-Sisi must stop the country’s slide into an entrenched autocracy and find a way to bring the Muslim Brotherhood back into the political process.

Meanwhile in Syria, the Times and the online edition of the Telegraph report that President Assad has condemned the foreign backing of what he calls “terrorist” opponents seeking his downfall. The Independent online says Assad is starving civilians as a weapon against opposition groups in the town of Moadaniyeh. The Telegraph suggests large numbers of foreign al-Qaeda recruits, including Britons, are being hosted and prepared for action in Turkey, before joining the fighting in Syria.

The main story in this morning’s Israeli media is the shock sacking yesterday of CEO Jeremy Levin by Israeli global pharmaceutical giant Teva. The company recently announced a wave of redundancies as part of a cost cutting exercise, but yesterday’s decision to fire Levin came as a surprise. The Haaretz headline declares “Crisis in Teva worsens” while Israel Hayom warns “Teva’s crisis is everyone’s problem.” Yediot Ahronot quotes Levin saying that he wanted to stay in his position, while Maariv also prominently covers the story. Senior economics commentator Sever Plocker writes in Yediot Ahronot, criticising the Teva leadership and says sacking Levin is no substitute for a comprehensive corporate plan which will set straight the company’s course.

Maariv claims Israeli officials attended a secretive meeting in Switzerland last week, brokered by the United States and Russia which explored the possibility of a Middle East-wide conference on the elimination of weapons of mass destruction throughout the region. However, Eli Bardenstein argues such a conference is unlikely to take place as it would become a forum for Arab states to pressure Israel.

Maariv also gives prominence to a meeting yesterday between Shas leaders Aryeh Deri and Eli Yishai at which the two shook hands publicly and agreed to clear the air following months of bad feeling between the two.