The Independent i reports that Israel’s Shin Bet internal security service announced yesterday that it arrested a three-man terror cell in the West Bank city of Hebron which identified with ISIS. It is the first time that a cell linked to ISIS has been found to be active in the West Bank. The arrests took place in November and the three men planned to kill Israeli soldiers and civilians.

The Telegraph and the Times both report that Israel has withheld £83 million worth of Palestinian tax revenues, which it collects on behalf of the Palestinian Authority (PA). The move is in response to the PA’s decision last week to sign the Rome Statute and apply to the International Criminal Court (ICC) in order to prosecute Israelis, a development which Israel and the United States regards as a serious undermining of bilateral diplomatic progress. However, the Times speculates that Israel is unlikely to take further action which would seriously hamper the PA’s viability. Meanwhile, in the Independent and Independent i, Robert Fisk comments on the situation arguing that the Palestinians cannot be criticised for advocating international law.

The Guardian online says that Iran’s President Hassan Rouhani yesterday described nuclear negotiations with the international community as a matter of “heart” and “willpower,” not just centrifuges, in what they believe is a nod towards agreeing a resolution. The Financial Times says that Rouhani went further in his speech and indicated that he may hold a referendum on a nuclear deal. Meanwhile, the Times reports that the US Congress, which is now Republican-controlled, is readying to re-introduce legislation which would mandate tough sanctions on Iran should it breach the current interim nuclear agreement.

The Guardian online says that US-led coalition forces have hit ISIS targets in air strikes over the weekend, including those in Syria.

The Independent online reports that in neighbouring Lebanon, there is growing impatience in both government and among the public at the huge influx of Syrian refugees fleeing the country’s Civil War, which is placing a significant strain on the country’s resources.

In the Israeli media, the top item in Yediot Ahronot and in Maariv is a recount of votes cast during last week’s Likud primaries for the party’s list of parliamentary candidates. There were apparently a number of discrepancies, which Yediot Ahronot refers to as “embarrassing” and Maariv a “farce.” Reports this morning, including on Israel Radio news indicate that the re-count has not significantly altered the party’s Knesset slate, with Tzipi Hotovely still missing out on a realistically electable slot.

Maariv prominently covers the weekend decision to withhold tax revenues collected on behalf of the Palestinian leadership. The move came in response to the PA’s decision to apply to join the ICC. Netanyahu is quoted saying that PA President Abbas has chosen confrontation through signing the Rome Statute. Meanwhile, Haaretz claims that Israel’s government is encouraging the United States Congress to withhold aid to the PA in response to the ICC application.

In election news, Israel Radio reports that Meretz leader Zahava Galon was yesterday elected to continue in her position. It also reports that Shas leader Aryeh Deri has indicated that he may return to the party’s leadership having last week resigned his Knesset seat. Meanwhile, Israel Hayom previews a Likud Party campaign launch event which will take place in Tel Aviv this evening.