The Guardian and Telegraph report that leaked cables have revealed that Iranian intelligence officers have co-opted much of the Iraqi government’s cabinet, infiltrated its military leadership, and even tapped into a network of sources once run by the CIA.

BBC News, the Guardian, Telegraph, Times, Independent, FT, ITV News, Sky News, Daily Mail and Reuters report that the US has shifted its position on Israeli settlements in the West Bank, no longer viewing them as inconsistent with international law. US Secretary of State Mike Pompeo said the status of the West Bank was for Israelis and Palestinians to negotiate. Israel welcomed the move – a reversal of the US stance under the Obama administration. The Yesha Council has called on the Israeli government to immediately claim sovereignty over settlements.

The Daily Mail reports that the IDF has intercepted four rockets fired into the Golan Heights from Syria, moments before “retaliatory” explosions were heard in Damascus.  The rockets come a week after an Israel strike targeted a top Palestinian militant in the Syrian capital, in what appears to be a failed assassination attempt.

BBC News, the Guardian, Times, FT, Sky News and Reuters report that at least 12 people have been killed in Iran since protests against fuel price rises erupted three days ago, although reports suggest the number is far higher. The situation on the streets is unclear on account of a nationwide internet shutdown. The government said Monday had been “calmer”, despite “some minor issues”, while it has begun to rush out promised direct payments to 60 million Iranians.

In the Independent, Borzou Daragahi examines “how Tehran let a plan to remove subsidies turn into a threat to the regime”.

Reuters reports that Turkish Foreign Minister Mevlut Cavusoglu has warned that  Ankara would launch a new military operation in north-east Syria if the area was not cleared of terrorists. Cavusoglu was quoted as saying that US and Russia had not done what was required under agreements that halted a Turkish offensive against the Kurdish YPG militia last month.

The Guardian and Reuters report that the Houthi movement have hijacked a boat towing a South Korean drilling rig, with a global shipping tracker calling it a Saudi-flagged vessel.

Reuters reports that Iran has breached another limit in the JCPOA by accumulating slightly more than 130 tonnes of heavy water, a UN nuclear watchdog report showed on Monday.

Reuters reports that the US will no longer waive sanctions related to Iran’s Fordow nuclear plant after Tehran resumed uranium enrichment at the underground site.

Reuters reports that the US has imposed sanctions on four companies and two people operating in Syria, Turkey, the Gulf and Europe for providing financial and logistical support to IS.

BBC News and Reuters report that Airbus has won $30bn (£23bn) worth of orders for 170 aircraft, in another sign of the continued expansion of Middle East airlines. On the second day of the Dubai Air Show, Emirates announced the purchase of 50 Airbus A350-900 XWBs planes at a cost of $16bn. That was closely followed by low-cost carrier Air Arabia ordering 170 Airbus A320s worth $14bn.

The FT reports that Saudi Arabia has abandoned plans to formally market shares in Saudi Aramco outside the kingdom and its Gulf neighbours, in the latest sign of the initial public offering’s shrunken ambitions. In the Guardian, Nils Pratley argues that the “Saudi Aramco flotation is a failure before it has even begun”. In the FT, Simeon Kerr, Arash Massoudi and Anjli Raval examine “how Riyadh’s Saudi Aramco ambitions were thwarted”.

Reuters reports that the US could impose sanctions on Egypt and block it from future military sales if it goes ahead with a purchase of Russian warplanes.

The Telegraph reports that a video has emerged purporting to show Russian mercenaries torturing and beheading a Syrian army deserter, in rare footage of Moscow’s shadowy paramilitary outfit operating in Syria.

Reuters reports that at least ten workers were killed and 35 wounded in an air strike that hit a biscuit factory in Libya in what a senior UN official said was a possible war crime. The majority of those killed in Wadi Rabea were migrants, UN Libya envoy Ghassan Salame told the UNSC.

The Times reports that President Donald Trump has been criticised by veterans for his decision to pardon two former US soldiers charged with war crimes in Iraq and Afghanistan, and to restore the rank of a third accused of violating rules of engagement.

Reuters reports that Kuwait’s caretaker Prime Minister Sheikh Jaber al-Mubarak declined to be reappointed as premier on Monday, rebuffing an offer from the ruling emir after submitting the government’s resignation last week.

Reuters reports that two Saudi male journalists, who say the authorities revealed their romantic relationship in retaliation for contacts one of them had with foreign media, have been detained in Australia after seeking asylum last month.

Reuters reports that three Taliban commanders part of a prisoner swap for two Western hostages held by the militant group have landed in Qatar.

In BBC News, Barbara Plett Usher argues Hamas chose restraint during last week’s flare-up of hostilities between Israel and Palestinian Islamic Jihad because it was “in the Palestinian interest” to avoid an escalation.

In the Guardian, Rob Evans and David Pegg ask “is the UK government turning a deaf ear to arms deal bribes?”.

In the Guardian, Ayman Odeh MK reflects on the fears of Arab-Israelis who feel abandoned by law enforcement in an interview with Oliver Holmes.

In the Independent, Patrick Cockburn argues that the “alleged abuses by British army in Iraq and Afghanistan highlights total failures in both wars”.

Lieberman issues Wednesday deadline: All the Israeli media report that Yisrael Beitenu leader Avigdor Lieberman said yesterday that he would give talks with both Likud and Blue and White a chance until Wednesday at noon, after which it would be “every man for himself.” Lieberman reiterated his desire for a national unity government, saying: “You don’t need to look under the flashlight, there are no other intentions… any other government would find it difficult to function.” Lieberman added that any narrow government – whether a left-wing minority government or right-wing majority coalition – “would be a disaster.” Lieberman met again with Blue and White chief Benny Gantz last night and was set to meet with Prime Minister Benjamin Netanyahu this morning after a positive meeting between the two yesterday. Additional media reports indicated that Netanyahu has been urging his ultra-Orthodox allies to soften their positions on issues of religion and state, in an effort to “square the circle” vis-à-vis Lieberman and entice him back into the right-wing fold.

Argentina and Uruguay draw in Tel Aviv friendly: In a widely viewed football friendly in Tel Aviv yesterday, Argentina and Uruguay drew 2-2, with Lionel Messi scoring the equaliser from the penalty spot in stoppage time. Over 30,000 Israeli spectators, many of Argentinean descent, filled the Bloomfield Stadium. The match was overwhelmingly praised in the Israeli media both for its level of play and the symbolic significance of having world class footballers in Israel – despite the pressure applied on the national teams by pro-Palestinian groups overseas to cancel the event.