The Telegraph covers speculation in the Israeli media that the United States could agree to free convicted Israeli spy Jonathan Pollard in order to ensure that Israel frees the fourth and final batch of Palestinian prisoners scheduled later this week. The releases are part of a deal agreed by Israel to pave the way for a return to peace talks in July 2013. This week’s potential release comes just a month before the deadline for current peace talks between Israel and the Palestinian Authority (PA) ends.

The Independent and Independent i cover a large Hamas rally in Gaza yesterday, during which Hamas leaders stressed their continuing opposition to Palestinian peace talks with Israel.

The online edition of the Telegraph reports that the workers union at Israel’s Foreign Ministry has called an all-out strike, closing all Israeli missions abroad, amid a year-long dispute with the Finance Ministry over pay and conditions. The latest development is an escalation in action by the workers union, which has already seen Israel’s Prime Minister Benjamin Netanyahu cancel a trip to South America.

The Times reports that Iranian hardliners have threatened President Rouhani that they will overthrow him unless he secures a nuclear deal with the international community in the coming months. The report says hardliners are concerned Rouhani will give way in negotiations over atomic enrichment and the country’s ballistic missile programme, but are tempering their opposition to talks while they have the support of Supreme Leader Ayatollah Khamenei. Meanwhile, an editorial in the Financial Times urges US President Obama to use a trip this week to Saudi Arabia to persuade the Saudi leadership to trust in the international community’s nuclear talks with Iran.

The Guardian, Independent and Telegraph all report that Turkey yesterday shot down a Syrian jet over the border between the two countries, after the Syrian plane reportedly strayed into Turkish air space while operating against opposition groups in the border region. An editorial in the Telegraph warns that a Syrian response against Turkey, a NATO member, could draw Western countries into the conflict. The Independent online says the head of the Organisation for the Prohibition of Chemical Weapons (OPCW) has said one third of Syria’s chemical weapons stockpile has been destroyed, but is calling for the Syrian authorities to increase the pace of transferring weapons, with several deadlines having been missed.

In the Israeli media, both Maariv and Makor Rishon report that there are doubts over whether the fourth and final Palestinian prisoner release will take place this week. Maariv notes that no cabinet meeting has yet been set to discuss a list of potential prisoners to be released. The same article suggests that Israel’s government has asked the United States to release Jonathan Pollard, particularly if there is an expectation that Arab Citizens of Israel will be freed as part of the release.

Another major item is a meeting of the housing cabinet today, which will discuss plans to lower house prices in Israel. It is the top story in this morning’s Israel Hayom and Yediot Ahronot, especially after Finance Minister Yair Lapid last week proposed that VAT should be cancelled for a large segment of first-time buyers. However, both Haaretz and Maariv suggest that Prime Minister Netanyahu opposes Lapid’s plan. According to Israel Radio news, a team including Lapid will be established today which will be tasked with constructing a plan within three months to lower house prices.

Meanwhile, Israel Hayom says that the IDF has raised its level of alert in the West Bank after a weekend shoot-out in Jenin killed a senior wanted Hamas leader. There were a number of violent incidents in the West Bank yesterday, including explosive devices thrown at Israeli security personnel near Bethlehem, which wounded two Border Police officers.