The Telegraph, Independent and the online edition of the Guardian all cover US Secretary of State John Kerry’s reaction yesterday to comments made over the weekend by Iran’s Supreme Leader Ayatollah Khamenei, who said that Iran remains entirely opposed to the “arrogant” United States despite last week’s nuclear deal. Kerry admitted to being “very disturbed” by Khamenei’s comments. Meanwhile, the Guardian also reports Kerry’s description of critics who claim he was too eager to conclude a deal as “dumb.” He says that he walked away from an agreement on three occasions during the lengthy talks, over excessive Iranian demands.

The Daily Mail, Independent i and the online editions of the Guardian and Independent all report a decision by Israel’s Attorney General to launch a criminal investigation into the management of Prime Minister Netanyahu’s official residence. Extravagant spending at the residence became a major focus in the Israeli media during the election campaign earlier this year. However, there is no suggestion that Netanyahu or his wife Sara are implicated in the impending investigation.

The Telegraph and Guardian cover a warning to Israel by the European Union’s Council of Foreign Ministers not to demolish buildings in the Palestinian village of Khirbat Susiya in the West Bank after an Israeli court ordered that buildings which had been constructed without a permit can be demolished from this week. The warning was part of a wider statement on the region, which also praised Israel’s measures to increase goods entering the Gaza Strip.

The Independent i says that a French prosecutors office has called to dismiss the case alleging that former Palestinian Authority (PA) President Yasser Arafat was poisoned, due to lack of evidence. Arafat died in a Paris hospital in 2004.

The Independent online reports on the public hustings for Labour leadership candidates at a Jewish community centre in London on Monday evening. The debate focused largely on Israel and the article highlights Liz Kendall’s assertion that Labour should not have voted in favour of recognising a Palestinian state during a House of Commons vote last year. The article also underlines that Kendall, Yvette Cooper and Andy Burnham also made clear their opposition to any boycott of Israel.

The Independent online reports that Foreign Secretary Phillip Hammond has said that UK air surveillance of ISIS forces in Syria while refraining from bombing their forces is “militarily inefficient.” Meanwhile, the Guardian online says that a US airstrike in Syria has killed a senior leader of the al-Qaeda offshoot Khorosan. The online editions of the Guardian, Telegraph and Independent speculate that three Spanish journalists who are missing in Syria may have been kidnapped by ISIS.

In the Israeli media, the top item in Yediot Ahronot, Maariv and Israel Hayom, also covered prominently in Haaretz is the publication yesterday of the report by Maj. Gen. (res.) Yohanan Locker and his committee over budgetary and structural reforms in the IDF. The report recommends significant cuts, including changes in retirement provision for officers and a cut in mandatory service. However, Locker’s recommendations have come under fire from IDF officials, with Yediot Ahronot highlighting the “storm” it has caused, while Haaretz underscores criticism from Defence Minister Moshe Ya’alon, who called the report “superficial.” Writing in Yediot Ahronot, Yossi Yehoshua comments, “Had the IDF and the committee members held an open conversation they might have disagreed, but it is reasonable to assume that they ultimately would have reached an agreement.”

Israel Hayom also highlights continued criticism by Prime Minister Netanyahu over last week’s Iranian nuclear deal. Netanyahu met yesterday with US Defence Secretary Ashton Carter and Italian Prime Minister Matteo Renzi. Netanyahu told them that “the deal with Iran poses grave threats to Israel and the Middle East, to Europe and the world.”