There is widespread coverage this morning of the lifting of international sanctions on Iran due to its nuclear development, with the International Atomic Energy Agency having declared that Tehran has complied with July’s deal with the P5+1 powers (US, UK, France, Russia, China and Germany). The Guardian, Financial Times, Independent, Times and Independent i all focus on comments made by Iran’s President Hassan Rouhani, who promised a flood of international investment and a “golden age” for Iran. The Guardian notes that Rouhani said “only Zionists” and “extreme Americans” oppose the nuclear deal.

The Metro includes condemnation over ending the sanctions regime by Israel’s Prime Minister Benjamin Netanyahu, who is quoted saying “Iran will now have more resources” to destabilise the region and that Israel is “prepared to deal with any threat.” The Times reports that Israel and Saudi Arabia are united in their condemnation of the nuclear agreement.

The Telegraph, Daily Mirror and Sun focus on comments by US President Barack Obama, who hailed the deal’s implementation, saying it means that, “Iran will not get its hands on a nuclear bomb.” The Guardian, Times and Sun all include a focus on the US prisoners who will be released by Iran as part of the growing rapprochement between the two countries.

In commentary on the lifting of Iranian sanctions, Patrick Cockburn says in the Independent that the “political landscape is changed but not transformed” by the deal. The Guardian’s Julian Borger comments that the agreement means “for the time being,” the “Iranian nuclear question has been settled.” However, a Guardian editorial says that despite the deal, Iran retains “very problematic” regional ambitions.

The Telegraph, Metro and Independent i all report that anti-Christian graffiti in Hebrew was found on an outside wall of Jerusalem’s Dormition Abbey, in what is thought to be the work of Jewish Israeli extremists. Israel’s Prime Minister Netanyahu described the incident as “deserving of every condemnation.”

The Independent includes a feature which indicates that Israel’s policy of demolishing the homes of Palestinian terrorists and their families is unifying local Palestinian communities, which are busily raising funds for those whose homes have been destroyed.

The Telegraph online reports that an official in the office of senior Palestinian official and veteran negotiator Saeb Erekat, has been arrested by Palestinian security forces on suspicion of having spied for Israel. The same report mentions that an Israeli woman in her thirties was yesterday stabbed to death by a Palestinian intruder in her West Bank home.

The Daily Mirror says that a Tel Aviv restaurant is offering a 50 per cent discount to Jews and Arabs who sit together and share a meal, in order to promote co-existence.

The Israeli media is dominated this morning by the murder of 38-year-old Daphna Meir in the West Bank settlement of Otniel. It is the top story in Yediot Ahronot, Maariv, Haaretz and Israel Hayom. Meir struggled with her attacker, who eventually fled the scene. The attack was witnessed by Meir’s teenage daughter, while two of her other children were also at home at the time. The attacker remains at large and a large manhunt was launched by Israeli security forces. Israel Radio news says that Prime Minister Benjamin Netanyahu and Defence Minister Moshe Ya’alon have both pledged that the terrorist will be caught and punished.

In other news, Israel Hayom and Israel Radio news report that former-Prime Minister Ehud Olmert is in talks with the state prosecution over his sentence regarding a bribery case known as the “Talansky Affair.” Olmert has already received an 18-month prison sentence for bribery in the “Holyland Affair” and faces a possible 8-month sentence in this additional case. The Supreme Court is set to hear Olmert’s appeal tomorrow.

Another major item is the future of major supermarket chain Mega, which finds itself in serious financial trouble. Maariv, Haaretz and Israel Hayom all report that a court decision will rule over significant payments owed by Mega to its suppliers, while 3,500 employees will strike over their future.