The Times reports that the Israeli government has backtracked on criticism of a Hungarian government-led poster campaign against Jewish billionaire George Soros, described as antisemitic by Hungary’s Jewish community and compared to Nazi propaganda by Human Rights Watch.  After initially endorsing the Israeli Ambassador to Hungary’s statement that claimed the posters sowed seeds of “hatred and fear” and called for the removal of the posters, a spokesperson for the Foreign Ministry said: “In no way was the statement meant to delegitimise criticism of George Soros, who continuously undermines Israel’s democratically elected government by funding organisations that defame the Jewish state.”

The Times reports that the only power plant in Gaza has largely shut down despite Egyptian fuel shipments, as Palestinian Authority (PA) President Mahmoud Abbas has barred Palestinian banks from transferring money to Egypt to pay for fuel.

The BBC reports that the Israeli Labour party has elected newcomer and former businessman Avi Gabbay as its new leader, winning 52 per cent of the vote in a final round of voting against former party leader Amir Peretz.  Following his victory, Gabbay said: “To anyone who doubted the vitality of Israeli democracy, to anyone who eulogised the Labour Party, this night is their answer.”

The Times reports that rebels in southwest Syria have accused regime forces of breaking a ceasefire brokered by the US and Russia that came into force on Sunday. Independent monitors have said that the ceasefire was broken at least six times, with artillery and tank fire reported in Deraa and Quneitra provinces.

The two stories dominating the Israeli media this morning are the surprise election of Avi Gabbay as leader of the Israeli Labour party and the police detention and questioning of individuals closely linked to Prime Minister Netanyahu in the Case 3000 “submarine affair”.

Gabbay’s victory dominates all the front pages. Commentators are focusing on the remarkable rise of a politician virtually unknown until recently, who only joined Labour in December 2016 having previously served as a minister for the Kulanu party. In Yediot Ahronot, political commentator Nahum Barnea dubs him “Avi the Conqueror” and likens him to French President Emmanuel Macron, whilst Sima Kadmon asks “Avi Who?”.

In Maariv, Ben Caspit speculate as to whether Gabbay, a successful business executive of Moroccan dissent, has the potential to win over more aspirational voters among the Likud’s traditional base in the Mizrahi (Jews of Middle Eastern origin) sector.

Haaretz political commentator Yossi Verter writes of Labour’s membership that “their despair led them to choose the most unreasonable, most ludicrous, most daring and subversive option”.

Coverage of the Case 3000 “submarine affair” also features on all the front pages, with the close association between the six suspects questioned yesterday and Prime Minister Netanyahu a focus of the coverage. A gag order restricted the press from immediately naming all those questioned. It was revealed yesterday that Avriel Bar-Yosef, former Deputy Chairman of the National Security Council, and ThyssenKrupp’s Israeli agent Mickey Ganor were among them. Kan Radio News reports this morning that Ganor remains under detention, as does Ganor’s assistant Attorney Ronen Shemer. Netanyahu’s cousin and personal attorney David Shimron is reported this morning to be under house arrest. The case involves suspected corruption in the decision to buy naval vessels from the German supplier ThyssenKrupp. Maariv commentator Ben Caspit asks: “Is it possible that Prime Minister Binyamin Netanyahu didn’t know about Attorney David Shimron’s involvement?” Times of Israel updates the story online this morning, with news that a former IDF Major General is the seventh suspect taken in for police questioning.

In other news, the Jerusalem Post features on its front page a ceremony attended by Israeli Energy Minister Yuval Steinitz and PA Prime Minister Rami Hamdallah to open the first PA owned and operated electricity sub-station near to Jenin in the West Bank.

Israel Hayom highlights a Knesset report into the high cost to the Israeli tax payer for handling welfare and security issues related to illegal migrants.