The Guardian covers comments made yesterday by Israeli Prime Minister Benjamin Netanyahu regarding reports that United States intelligence spied on former-Prime Minister Ehud Olmert and former-Defence Minister Ehud Barak while in office. Netanyahu told a meeting of the Likud faction in the Knesset that such actions are “unacceptable to us” and that he had “asked for an examination of the matter.”

With Christmas approaching, the Times includes a feature on the impact of West Bank settlement construction on Bethlehem and argues that it is stifling growth in the city. A similar piece also appears in the Independent, outlining the challenges to tourism in Bethlehem and the increasing emigration of Christian Palestinians from the city. The article cites several factors including Israeli occupation and the high Muslim birth rate which is squeezing Christians out of Bethlehem.

The Guardian and Financial Times cover online a huge car bomb which exploded early this morning at a police headquarters north of Cairo. At least fourteen people are reported to have been killed in the blast, which Egypt’s ruling military authority blamed on the Muslim Brotherhood, branding the organisation as “terrorists”. The Times online includes an item on the difficulties and dangers faced by Egypt’s Christian minority, in particular an increasing threat of kidnapping by Muslims who reportedly demand a significant ransom for their safe return.

The online editions of the Guardian and Telegraph say that rudimentary barrel bombs dropped by Syrian government helicopters in and around Aleppo during the past week have killed more than 300 people.

In the Israeli media, the major story is the stabbing of an Israeli policeman near the West Bank settlement of Adam yesterday. The policeman is said to be in moderate condition, while Israel Radio reports that the assailant is yet to be apprehended. Yediot Ahronot’s headline says “Terrorism rears its head” while the incident is also prominently covered by Haaretz. Meanwhile, Makor Rishon highlights a Shin Bet report which says that there have been increasing incidents of Palestinian violence towards Israelis in recent months, with the number of “nationalist incidents” having doubled since the resumption of peace talks in July. Writing in Yediot Ahronot, Alex Fishman says that “The embers in the West Bank have been glowing for a number of months now.”

Israel Hayom reports that Israel’s government will look to extend peace talks with the Palestinian Authority (PA) by a year beyond the nine-month framework agreed at the end of July. Maariv, Makor Rishon and Israel Hayom report that Prime Minister Netanyahu will look to include the release of convicted US spy Jonathan Pollard as a condition of any future peace deal. Haaretz reports that Netanyahu yesterday criticised the United States for having allegedly spied on senior Israeli leaders.

Israel Radio news says that IDF soldiers yesterday fired at and injured a Palestinian man who attempted to plant a bomb at the Gaza border fence. The incident was one of several similar instances during the last few days in which Palestinians attempted to plant explosive devices near the border with Israel.