The Financial Times, Guardian, Independent and Independent i all cover a quarterly report issued yesterday by International Atomic Energy Agency (IAEA), which said Iran has slowed expansion of its nuclear capability during the past three months. Iran has not made any major new installations at the Arak plutonium plant or added any new-model centrifuges at Natanz, although the amount of twenty per-cent enriched uranium crept up by 10kg. The Independent notes that the IAEA emphasised it still cannot provide credible assurances over Iran’s nuclear programme. The Guardian says that Israel’s Prime Minister Benjamin Netanyahu was “unimpressed” by Iran’s actions detailed in the report.

Meanwhile, the Independent i says US Secretary of State John Kerry said yesterday that he understands Israel’s concern over the deal being discussed between the P5+1 powers and Tehran and that any eventual agreement will be “failsafe.” The Times online reports that in a rare public speech, Hezbollah leader Hassan Nasrallah said Israel was in league with Arab countries in opposing a deal with Iran and that if agreement is not reached between the international community and Tehran, it could lead to regional war.

The Guardian reports on further comments made by Nasrallah, who pledged Hezbollah’s continued support for Syrian President Assad. Earlier this week, Hezbollah fought alongside Assad’s troops to capture a southern suburb of Damascus from opposition forces.

The online edition of the Financial Times says Egypt’s ruler, General al-Sisi yesterday hailed a new era in Egypt-Russia relations, after a visit to Cairo by Russia’s Foreign Minister and Defence Minister, during which a lucrative arms deal was discussed. A feature in the Independent and Independent i focuses on the growing idolisation of al-Sisi in Egypt, but suggests his popularity could wane if economic or security instability in the country worsens.

Writing in the Daily Express, Frederick Forsyth suggests large sums of international aid money were siphoned off by former-Palestinian Authority President Yasser Arafat, while many Palestinians remained in poverty. The Independent i reports that raw sewage has leaked into streets in the Hamas-controlled Gaza Strip due to a lack of fuel at a local water treatment plant.

Iran’s nuclear development remains the main item in this morning’s Israeli media. Main items in both Yediot Ahronot and Haaretz focus on the latest IAEA quarterly report which indicates that Iran’s nuclear expansion has slowed during the past three months. Maariv and Sof Hashavua both cover the ongoing tensions between Israeli and US officials regarding the interim deal being discussed between the P5+1 powers and Tehran. Sof Hashavua says John Kerry is reported to have told US senators to dismiss Israel’s warnings over the proposed accord, while Maariv highlights the response of Home Front Defence Minister Gilad Erdan, who asked whether Kerry expects Israel to “wait until the knife is at our throats” before opposing such diplomatic developments.

Writing in Yediot Ahronot, Nahum Barnea suggests that recent tension between Israeli government officials and the Obama administration should not be cause for great alarm, given President Obama’s domestic weakness. Meanwhile, a poll in Israel Hayom indicates 65 per-cent of Israelis oppose an incoherent deal between the US and Iran.

Maariv includes an interview with Yesh Atid leader and Finance Minister Yair Lapid, who expressed his desire to remain at the head of the Finance Ministry until 2020. Meanwhile, Haaretz reports that in the wake of Foreign Minister Avigdor Lieberman’s acquittal on fraud and breach of trust charges last week, the Justice Ministry is looking to reform the legal definition of corruption.