Most UK broadsheets report on yesterday’s sharp escalation in violence around Israel’s border with the Gaza Strip. The Times, Telegraph, Independent, Evening Standard, Independent i and the online edition of the Guardian all report yesterday’s barrage of between 60-80 rockets fired from Gaza into southern Israel and several targeted air strikes launched by Israel in response. All reports note the apparent direct participation of Hamas in the rocket fire, a departure from the status quo of the past few months, during which rival armed groups having largely taken responsibility for rocket attacks on Israel. Reports also quote Israeli government officials who warn that continued rocket fire will not be tolerated.

There is also widespread coverage of an accusation by Sudan’s Information Minister that four Israeli military aircraft bombed a factory at Yarmouk late Tuesday night. The Times, Financial Times, Independent and online editions of the Guardian and Telegraph all reported the incident. Israeli officials refused to comment on the claims. All reports comment that Sudan is thought to be used as a route to supply weapons to Hamas in the Gaza Strip. Meanwhile, the Times, Independent and its sister publication Independent i all report on Iran’s increasingly severe economic situation. The Times reports that the Iranian economy is on the verge of collapse, with foreign currency reserves dwindling, following the imposition of international sanctions. The Independent says that Tehran may harden its stance on nuclear development in a bid to loosen the sanctions.

Elsewhere in the region, the online editions of the Guardian, Times, Telegraph and Independent all report that United Nations – Arab League envoy to Syria, Lakhdar Brahimi has apparently persuaded Syria’s President Assad to agree to a four-day ceasefire to coincide with the upcoming Eid al-Adha holiday.  The Telegraph reports on calls by the European Union and United States for political stability in Lebanon after several days of violence in the country following a deadly blast last Friday in Beirut which killed a senior security official viewed as an opponent of Syria. Meanwhile, an editorial in the Times focuses on the influence of Syria’s President Assad in sowing the current tension and violence in Lebanon.

Two stories dominate the Israeli media this morning. Yesterday’s massive rocket and mortar fire on the south of the country is the headline in Haaretz and is a prominent story in Israel Hayom, Maariv, Yediot Ahronot and Makor Rishon. Several of the reports comment on the visit to the Gaza border yesterday by Prime Minister Netanyahu and Defence Minister Barak, who both announced the allocation of funds to help fortify public and private buildings in the area. The other main headline is Sudan’s accusation that four Israeli jets bombed an arms factory near to the capital Khartoum. It is the headline story in Israel Hayom and Makor Rishon and is widely reported in other dailies. Alex Fishman, writing in Yediot Ahronot and Yoav Limor in Israel Hayom examine some of the reasons why Israel might have been inclined to carry out such an operation. Fishman argues that Sudan and Iran have a long-standing defence pact and argues that the factory may have been manufacturing or storing Iranian weapons. Elsewhere, Israel Radio News this morning reports that the United States will continue to give Israel $4billion of guarantees over the next four years. Israel’s Finance Minister Yuval Steinitz commented that the pledge is a vote of confidence in Israel’s economic leadership.