The Independent reports that the UN human rights office has said that Israeli settlements in Palestinian territory remain illegal. BBC News, the Times, FT, Channel 4 News and Reuters report that Palestinians have condemned the US decision to abandon its four-decades-old position that Jewish settlements in the West Bank are inconsistent with international law. Chief negotiator Saeb Erekat said it threatened to replace international law with the “law of the jungle”. Prime Minister Benjamin Netanyahu praised the US announcement when visiting the Alon Shvut settlement.

Reuters reports that the US decision is expected to strengthen evangelical’s’ support for President Donald Trump as he seeks re-election in 2020, according to a leader of the president’s evangelical advisory group.

In the Guardian, Oliver Holmes and Quique Kierszenbaum interview residents of the Efrat settlement who have welcomed the US declaration: ““There is a growing change in attitudes […] and the current administration is certainly spelling it out”. The Guardian argues that the Trump administration’s declaration “cannot change international law. But it will be seen as a green light for expansion and annexation”. The Guardian also reports that Jordan has accused the US of “entrenching the Israeli occupation” of Palestinian territories.

BBC News, the Telegraph, Daily Mail and Reuters report that Israel says it has hit dozens of targets in Syria belonging to the Syrian government and Iranian forces. The IDF says the “wide-scale strikes” responded to rockets fired by an Iranian unit into Israel. Syria says two civilians were killed but Syrian air defences shot down most of the missiles over the capital Damascus. On Tuesday, the IDF said it had intercepted four rockets fired from Syria towards northern Israel.

The Telegraph reports senior IS members with access to “huge” amounts of money are in Turkey and plotting a comeback. Lieutenant General Saad al-Allaq, head of Iraq’s Military Intelligence, claimed in an interview with CNN that Iraq has given Ankara dossiers on nine alleged leaders of IS, including top financiers for the terror group.

Reuters reports the Pentagon has published a report concluding that IS exploited the Turkish incursion into north-east Syria and the drawdown of US troops from the region, while the militant group will likely have the “time and space” to target the West.

BBC News, the Guardian, Independent, Channel 4 News, Sky News and Reuters report that the UN human rights office has stated that dozens of people may have been killed in Iran since Friday during protests against a sharp rise in petrol prices. A spokesman urged security personnel not to use excessive force, including firing live ammunition, and called for access to the internet to be restored. Amnesty International said it had received credible reports that at least 106 protesters in 21 cities had died.

The Independent reports that critics say the Trump administration’s message of support for Iranians is not genuine “as US sanctions partially responsible for economic crisis”.

The FT argues that “Iran’s fuel price crisis shows economy strangled under US sanctions”. The FT says that “Iran’s deepening malaise laid bare by protests”.

Reuters reports that the US aircraft carrier strike group Abraham Lincoln sailed through the Strait of Hormuz on Tuesday, amid simmering tensions between Iran and the US.

Reuters reports that France has lamented the US decision to end a sanctions waiver related to Iran’s Fordow nuclear facility, but also said it feared Tehran’s latest violations of the JCPOA.

Reuters reports that the Turkish Defence Ministry said on Tuesday that the Kurdish YPG militia had killed three people and wounded eight in a missile attack on a school in the Tel Abyad region of northern Syria.

The Times and Reuters report that Lebanese politicians on their way to parliament to discuss Lebanon’s economic crisis were forced to turn back by protesters blocking the streets. MPs had been due to meet to discuss new laws to deal with the emergency as the country’s banking system edged closer to collapse.

The Guardian, Telegraph and Channel 4 News report that a Bahraini dissident who claimed he was beaten and threatened with being thrown from the roof of the country’s embassy in London by staff in July has lodged a complaint with police.

The Times, Independent and ITV News report that the Taliban have released two western hostages in exchange for three militant commanders. Kevin King and Timothy Weeks, were teachers at the American University in Kabul when they were seized in 2016.

Reuters reports that President Ashraf Ghani has claimed that security forces have “obliterated” IS militants in Afghanistan, hours after a prisoner swap with Taliban insurgents raised hopes of a lull in violence in the country.

An Egyptian whistleblower who prompted mass protests against President Abdel Fattah el-Sisi has told Sky News that the UK must stop supporting him, warning it could lead to bloodshed and mass immigration to Europe.

Reuters reports that two US service members were killed in a helicopter crash in Afghanistan on Wednesday. “The cause of the crash is under investigation, however preliminary reports do not indicate it was caused by enemy fire”.

Reuters reports that China’s MSA Capital and Al Salam Bank-Bahrain SALAM.BH launched a $50mn venture capital fund on Wednesday, using Bahrain as a hub to invest in sectors such as e-commerce and financial technology in the Middle East.

Reuters reports that Kuwait’s ruler on Tuesday named Sheikh Sabah al-Khalid al-Sabah as prime minister, elevating him from his role as foreign minister, after a row between ruling family members and parliament prompted the last government to resign.

Reuters reports that more than 120 journalists are still being held in Turkey’s jails, a global record, and the situation of the media in the country has not improved since the lifting of a two-year state of emergency last year, a global press watchdog said on Tuesday.

In the Independent, Borzou Daragahi examines “Iran’s alleged campaign of terror in Europe”.

In the FT, John Gapper argues that “Saudi Aramco does not rule the world”: “the valuation of an energy company cannot be engineered like the production of oil”.

Coalition talks continue as Gantz nears midnight deadline: All the Israeli media report that last night’s meeting between Benny Gantz and Prime Minister Benjamin Netanyahu failed to achieve a breakthrough. Gantz said after the meeting that: “A third election would be bad, but we can’t concede fundamental principles and values….We will continue to make every effort and will leave no stone unturned to try to reach understandings and to form a government in the time left.” Prime Minister Netanyahu accused Gantz of rejecting the President’s proposal of a rotating Prime Minister deal and ignoring the will of the majority to see a broad national unity government formed. Netanyahu repeated his allegation that Gantz is planning to form a minority government that relies on MKs from the Joint List abstaining. All eyes are on Yisrael Beteinu leader Avigdor Lieberman who is expected to make an announcement at 13:00 Israel time today.

US and Israel coordinated settlement announcement: Israel’s Channel 13 News reported details of behind the scenes talks in the lead up to the US announcement on settlements yesterday. According to the report, US Ambassador to Israel David Friedman pushed for a change early in the Trump administration, but former Secretary of State Rex Tillerson opposed the move. Ahead of the announcement they consulted both Netanyahu and Gantz, noting the latter “did not object.” Both Friedman and Secretary of State Pompeo were motivated to reverse President Barack Obama’s policy on settlements. A US official said the new policy should not be perceived as a “US green light” for Israel to annex part of the West Bank or to start unrestrained building in the settlements.

Police officer charged with negligent homicide for shooting Ethiopian teen: The Israel media report that a police investigation of an off duty police officer who shot and killed Solomon Tekah, a 19 year old Ethiopian-Israeli, has recommended that the officer is  charged with negligent homicide after he opened fire in the direction of the floor with the bullet ricocheting, hitting and killing Tekah. Prior to the shooting the officer confronted Tekah and a few of his friends after he suspected them of stealing a mobile phone. The policeman claimed that during the confrontation he found himself in mortal danger which prompted him to fire his gun. Ynet reports that the Tekah family are disappointed with the decision and feel as if Solomon “was killed for the second time,” but remain “restrained and noble.”