The response of Iranian President Mahmoud Ahmadinejad to the country’s currency crisis is widely reported in the UK media. Online editions of the Guardian, Telegraph and Financial Times all report Ahmadinejad’s public admission of the plummeting value of the Iranian currency, which he blamed on a “psychological war” waged by enemies abroad, rather than his own economic policies. Iran’s currency crisis is thought to be evidence that international sanctions against Iran are having a major impact.  According to the Guardian, Ahmadinejad also took aim at his domestic opponents, in particular parliament speaker Ali Larijani.

Meanwhile, the Independent online reports that Ahmadinejad has been summoned to the Iranian parliament to explain the country’s current precarious economic position.

The Telegraph and online editions of the Guardian and Financial Times report on growing evidence that Hezbollah is fighting alongside the forces of President Assad in Syria. Several Hezbollah-run media outlets in Lebanon have reported the burial of Hezbollah members following their deaths carrying out ‘jihadi duties’ in fighting. This represents the first tacit admission that Hezbollah operatives are fighting in Syria on behalf of the Assad regime. The Assad regime in Syria is a long-time ally of Hezbollah, and is an important conduit for transferring arms to Hezbollah from Iran.

The Financial Times report online that Syrian authorities have publicly accused Hamas leader Khaled Meshaal of ingratitude. Meshaal was permitted to establish a headquarters in Damascus, where he was based for more than ten years, yet Hamas failed to get behind Syrian President Assad during the country’s ongoing violent conflict, and Meshaal and other Hamas leaders have since left Syria.

The Telegraph online reports the vandalism yesterday of a Christian monastery in Jerusalem. The monastery was daubed with offensive graffiti in what is thought to be a ‘price tag’ attack, carried out by extremists opposed to restrictions on Jewish settlement in the West Bank. The report notes swift condemnation of the attack by Israeli President Shimon Peres and general opposition to such incidents by Israeli political leaders.

Meanwhile, the Financial Times reports a major change at the top of ground-breaking Israeli electric vehicle company Better Place. Founder Shai Agassi is to be replaced as chief executive by the CEO of the company’s Australian operation.

In Israel, the media continues to be dominated by speculation that the country’s Prime Minister Benjamin Netanyahu is set to call an early general election, as prospects appear slim that he will be able to reach an agreement with coalition partners on the proposed 2013 budget. Israel Hayom reports that Netanyahu will announce a decision on early elections within the next two weeks. Yediot Ahronot also reports that an announcement will be made in ten days time if no agreement is reached on the budget.

In a related story, both Maariv and Haaretz lead with reports of a disagreement between Netanyahu and Defence Minister Ehud Barak. The Prime Minister has reportedly accused Barak of exacerbating recent disputes between Netanyahu and US President Obama, in order to position himself as a moderating influence ahead of elections. Maariv commentator Mazal Mualem describes the incident as “the opening shot of his [Netanyahu’s] election campaign.” Haaretz quotes opposition leader Shaul Mofaz and Labour Party leader Shelly Yechimovich speaking in support of an early general election.