In today’s UK media, the Financial Times covers the final day of US Secretary of State John Kerry’s visit to Israel and the region. The report says that the United States will develop a plan of economic incentives for the Palestinian Authority (PA) in the West Bank in an effort to kick-start talks with Israel. However, Kerry emphasised that this is not in place of a political process and the report says that both sides are being encouraged to introduce confidence-building measures. The Guardian online suggests that Kerry is hoping to bring Israeli and Palestinian leaders together for four-way talks in Amman with Jordan and the United States. Meanwhile, the Independent online focuses on Kerry’s robust assertion yesterday, following a meeting with Israel’s Prime Minister Benjamin Netanyahu, that Iran will not be allowed to obtain a nuclear weapon.

The Times and the online edition of the Telegraph report on Iranian President Mahmoud Ahmadinejad’s announcement yesterday that Iran has escalated its nuclear programme, opening two new uranium mines and a yellowcake plant which produces material used at the very beginning of the enrichment process. The Times notes comments made by Yuval Steinitz, Israel’s International Relations Minister, calling for a tangible military threat accompanied by a short timetable to be issued to Iran by the international community.

The online editions of the Guardian, Times, Telegraph, Financial Times and Independent all cover an announcement made yesterday by Al-Qaeda in Iraq that they have merged with the Syrian Islamist opposition group Jabhat al-Nusra, which confirmed the amalgamation. Jabhat al-Nusra is already listed as a terrorist organisation by the United States and although it is unclear what practical implications the merger will have, the reports emphasise that it will complicate Western efforts to bolster the Syrian opposition looking to overthrow President Assad.

The Times online reports that an Israeli settler who killed two Palestinians and also attacked several Israelis, was yesterday handed two life sentences in the Jerusalem District Court. The Independent and its sister publication Independent i both include articles claiming that Idan Ofer, Israel’s wealthiest man, is set to move to London, in part due to proposed changes to Israel’s tax arrangements which would increase taxes on the rich. Both publications also include a review of the Israeli Oscar-nominated documentary The Gatekeepers.

In the Israeli media, Makor Rishon’s lead story outlines the economic initiative proposed by John Kerry for the Palestinian areas of the West Bank which has been agreed by both Israeli and Palestinian leaders. Meanwhile, Maariv says that although Israel has so far resisted calls to release Palestinian prisoners as a confidence-building measure, that the Israeli security establishment is agreeable to releasing several dozen elderly and ill prisoners convicted of deadly terrorist attacks. However, in Yediot Ahronot, an unnamed Israeli official says that the Israeli government expects PA President Abbas to recognise Israel as a Jewish state and commit to end the conflict before gestures are made by Israel.

There is also significant coverage this morning of conflicting reports over plans to raise tuition fees for university students. Finance Minister Yair Lapid took to Facebook to deny that such a decision would be taken, despite revelations that ministry officials had met with student representatives about the issue. It is a major story in Haaretz and Israel Hayom, which describes it as an “embarrassment” for Lapid. Meanwhile, Israel Radio News reports that Lapid is expected to meet Prime Minister Netanyahu today to present guidelines for the next state budget.