This morning’s Daily Mail, Guardian and the online edition of the Telegraph all report on a ‘war game’ exercise carried out in September by former senior Israeli officials at a Tel Aviv think-tank, designed to simulate the aftermath of an Israeli attack on Iranian nuclear sites. The exercise was filmed exclusively by Channel Four’s ‘Dispatches’ and will be screened later this week. The ‘war game’ reportedly concluded that Israel would be able to successfully carry out operations against Iran’s nuclear facilities, resulting in only limited retaliation.

The Telegraph, Guardian, Independent and Independent i all report that Palestinian Authority (PA) President Mahmoud Abbas has sought to clarify comments that he made to Israel’s Channel Two regarding the rights of Palestinian refugees. In the interview, Abbas appeared to indicate a softening of the demand for the ‘right of return’ for those Palestinians displaced in 1948. Following protests in Hamas-controlled Gaza and internal criticism elsewhere over the weekend, Abbas sought to clarify his views on Egyptian TV, saying that he “will never give up on the right of return.”

Meanwhile, the Guardian publishes an op-ed by Jamal Zahalka, an Arab member of the Knesset. Zahalka argues that the recent agreement of Prime Minister Netanyahu’s Likud Party to run alongside Avigdor Lieberman’s Yisrael Beitenu Party in January’s elections is evidence of growing extremism in Israel and suggests international sanctions on the country.

Elsewhere in the region, the Daily Telegraph reports on David Cameron’s visit to the Gulf States this week, during which the Prime Minister hopes to secure the sale of British-made fighter jets to the United Arab Emirates, Oman and Saudi Arabia.

The online editions of the Guardian, Times and Financial Times all report on meetings in Doha of the Syrian National Council (SNC), the Syrian opposition leadership group in exile. The discussions follow suggestions by the United States last week that the SNC become a more broad-based body including opposition leaders fighting within Syria itself. Meanwhile, the Independent online reports on a car bomb which exploded yesterday near a major hotel in Damascus.

Also online, the Financial Times and Telegraph both include articles on a summons issued by the Iranian parliament to President Ahmadinejad to appear before the assembly to explain his economic policies with the country facing serious financial difficulties. The summons is widely viewed as part of an internal political conflict between the country’s Supreme Leader Ayatollah Khamenei and Ahmadinejad.

Meanwhile, articles in the Times, Telegraph and Guardian all cover the unveiling of a bust of Winston Churchill in Jerusalem, in honour of his support for Zionism and in particular his backing for the Balfour Declaration in 1917, which committed British support for a Jewish State.

In the Israeli media, domestic coverage focuses on the response to PA President Mahmoud Abbas’ comments on the Palestinian ‘right of return’. Haaretz leads with reaction from former-prime minister Ehud Olmert and former-foreign minister Tzipi Livni, who both criticised Prime Minister Netanyahu for failing to progress the peace process. Meanwhile, Makor Rishon focuses on the comments of President Shimon Peres, who described Abbas as a “partner for peace.” As for Abbas himself, Israel Hayom reports that he has seemingly backtracked on his original comments, telling an Egyptian news outlet, “No one can give up on the right of return.”

Israel Hayom also focuses on claims that will be made by an investigative Channel Two show this week, that Prime Minister Benjamin Netanyahu and Defence Minister Ehud Barak allegedly gave instructions to prepare the security establishment for a possible strike against Iranian nuclear targets in 2010. According to the report both chief of staff at the time Gabi Ashkenazi and then Mossad director Meir Dagan were strongly opposed to the idea. Meanwhile, Maariv headlines with a survey that two-thirds of the Israeli public dislike the government’s economic policies and that nearly half of Israelis struggle to live on their salary.