Yesterday’s dramatic diplomatic developments in the region are covered by the Telegraph, Guardian, Times, Financial Times, Independent, Metro and Independent i. All report Palestinian Authority (PA) President Mahmoud Abbas’ announcement that he had applied for membership of 15 international bodies; throwing into doubt a proposed agreement over the release of Palestinian prisoners and the extension of peace talks, which had seemed close to completion earlier in the day. The agreement would apparently have seen Israel release a further 400 Palestinian prisoners, in addition to those scheduled for release last week, plus a commitment over restrictions on West Bank construction. The PA would have agreed to extend peace talks while the United States would have released convicted Israeli spy Jonathan Pollard. Following Abbas’ announcement, US Secretary of State John Kerry cancelled a meeting with Abbas scheduled for today but stressed peace talks would continue.

The Times says that a confidant of President Obama, Robert Einhorn yesterday published a 52-page proposal which he says is “imperfect” but could be acceptable to both the United States and Iran over Tehran’s nuclear programme. Einhorn’s plan would see the Fordow and Arak plants converted for safe research while Iran would be able to conduct low-level uranium enrichment leaving them a year away from the potential construction of a nuclear bomb.

The Financial Times online reports that the announcement earlier this week by Prime Minister David Cameron, where he ordered an investigation into Egypt’s Muslim Brotherhood and their possible UK activities, has caused tensions in Whitehall. Meanwhile, the Telegraph online says Conservative MP Crispin Blunt has warned that the investigation must not be a “fit up job” or else it will cause resentment. The Guardian online reports mixed reactions to the probe in Egypt itself, including support from government circles.

The online editions of the Guardian and Telegraph both cover new statistics released by the London based Syrian Observatory for Human Rights, which has now documented more than 150,000 deaths during the three-year Syrian Civil War. The group says that the real figure probably exceeds 220,000 deaths.

In the Israeli media, the front pages are dominated by the difficulties in peace negotiations. Yediot Ahronot‘s headline calls it a “Crisis in negotiations” while Israel Hayom describes a “Battle over Pollard deal.” Yesterday’s developments are also the lead item in Haaretz and Makor Rishon, which says negotiations are on the “verge of blowing up” following the PA’s decision to apply to international bodies. Maariv-NRG says that Israel’s Prime Minister Benjamin Netanyahu is focusing efforts on recruiting support for a new United States framework plan. Writing in Yediot Ahronot, Shimon Shiffer argues that despite the current difficulties, talks will ultimately continue as “the desire of the US, Israel and the Palestinians not to break the rules of the game indicates a victory for reason and illustrates the shared fate of the three players, which does not enable them to leave the game.”

Meanwhile, the reverberations from this week’s conviction of former-Prime Minister Ehud Olmert continue to be felt. Haaretz says that the State Prosecutor is considering reopening two other cases in which Olmert was accused but then cleared of misdemeanours. Israel Hayom suggests that there could be developments over additional charges being brought against Olmert for obstruction of justice, following new revelations which came to light towards the end of this week’s trial courtesy of Olmert’s former senior aide.