The online editions of the Telegraph and Guardian report that US Secretary of State John Kerry is “extremely encouraged” by the willingness of Arab states to lend their support to the US-led efforts to tackle ISIS. The reports say that Saudi Arabia and the United Arab Emirates have been especially forthcoming. However, writing in the Guardian, Ian Black warns that such a coalition is very delicate and may be limited to symbolic importance.

The diplomatic activity comes as Prime Minister David Cameron vowed to “hunt down” the killers of British aid worker David Haines, who was beheaded by ISIS over the weekend. Cameron’s comments are reported prominently by the Guardian, Times, Telegraph and Financial Times although all note that Cameron did not specify how he intends to go about such action.

In an exclusive item, the Telegraph online reports that a Foreign Office investigation will prompt the government to impose curbs on Muslim Brotherhood-linked organisations and activists. The report says that there are fears the Muslim Brotherhood is using London as a hub for its activities, especially fundraising.

The Guardian online includes a feature on children returning to school in the Gaza Strip following Operation Protective Edge. The article says that children will be given special therapy and treatment to help cope with the psychological impact of the conflict and that many Gaza schools are damaged or face a shortage of resources. Both the Times and Independent i include a picture and caption devoted to Gaza’s return to school.

The Times, Independent, Guardian and Independent i all report that Germany’s Chancellor Angela Merkel spoke yesterday at a public rally against anti-Semitism in Berlin. It follows a sharp spike in anti-Semitic attacks in Germany over the past two months since the Gaza conflict, including a firebomb thrown at a synagogue. Merkel attacked those who use criticism of Israel as a “cloak” for “their hatred of Jews.”

In the Israeli media, the top story is the disagreement between Prime Minister Benjamin Netanyahu and Finance Minister Yair Lapid over the 2015 state budget. While Netanyahu favours a significant increase in defence spending through increased taxation, Lapid refuses to raise taxes and instead wants to fund a more modest rise in defence spending through an increased national deficit. It is the top story in Israel Hayom, Haaretz and Makor Rishon. It is also the lead item in Maariv which says that an agreement is nearing and also in Yediot Ahronot which says that Lapid does not want the disagreement to escalate into the collapse of the coalition, which would prompt elections.

Another top story in Maariv is the letter of refusal to serve issued by 43 reservists in the elite intelligence unit 8200. The letter was roundly condemned over the weekend by political leaders from across the spectrum plus security officials. Writing about the episode in Yediot Ahronot, Nahum Barnea says that while the letter may be “childish and self-absorbed,” it also raises serious issues over “the complex relationship between us and the Palestinians.”

Maariv, Haaretz and Makor Rishon prominently feature comments made by an unnamed senior Israeli officer who has warned of the scale of a future conflict with Hezbollah. He claimed that it could even see Hezbollah momentarily seizing Israeli territory.

Meanwhile, both Israel Hayom and Israel Radio news say that Supreme Court Justice Noam Solberg will issue his ruling today on whether those found guilty in the ‘Holyland’ corruption affair, including former-Prime Minister Ehud Olmert will be imprisoned until an appeal on their convictions is made or not.