The Guardian and i report that Israeli author David Grossman has won the Man Booker International prize for his book A Horse Walks into a Bar.

The Financial Times and Times report that the Egyptian parliament has approved the transfer of two Red Sea islands to Saudi Arabia. The Times notes that in return Saudi Arabia will provide Egypt with cheap petrol for five years. The Metro notes that the decision was met with widespread public criticism in Egypt.

The Times reports that the Palestinian Authority (PA) has denied US Secretary of State Rex Tillerson’s claim that the PA will stop paying salaries to families of Palestinian terrorists. Palestinian Minister for Prisoner’s Affairs Issa Qarage called Tillerson’s statement “untrue”. A senior Israeli diplomatic official confirmed that Israel has not been informed of a change of policy.

This morning Yediot Ahronot leads on “Global honour for David Grossman” as the first ever Israeli winner of the Man Booker literary prize.

Maariv and Israel Hayom both give front page coverage to the horrific tower block fire in West London, noting that “people were throwing babies off the tenth floor”.

Maariv and Haaretz also give prominent attention to the shooting of US congressman Steve Scalise in Virginia. They note that the shooter has called US President Donald Trump a traitor and was an activist in Bernie Sanders’ campaign to be the Democrats’ presidential candidate.

Maariv asks if there is a historic change taking place in Iran as the moderates sweep the municipal elections.

In a small step toward normalisation, Yediot Ahronot reveal that the US, PA, Saudi Arabia, Jordan and Israel have been engaged in secret talks to coordinate the first flight of Palestinian pilgrims from Ben-Gurion Airport to Saudi Arabia. As there are no diplomatic relations, the plane will have to land briefly in Amman en route.

Haaretz follows the continued US efforts to restart Israeli-Palestinian peace negotiations. Jason Greenblatt, US Special Envoy on the peace process, is expected to visit Israel again towards the end of next week.

Yediot Ahronot reports that MK Aida Touma-Suleiman of the Joint List is planning to attend and speak at a Palestinian sponsored event at the UN later this month to mark the 50th anniversary of the Israeli occupation. Israeli Ambassador to the UN, Danny Danon, is trying to prevent Touma-Suleiman from attending. Danon argues that it would be a disgrace for an Israeli MK to speak against Israel at a UN conference, and describes her intention to do so as crossing a red line.

Maariv follows statements from Palestinian officials that the PA is still sending money to the families of terrorists. The paper also reports on the preliminary vote in the Knesset yesterday that approved a bill that would deduct the sum that the PA sends to incarcerated terrorists and their families from the tax money that Israel sends to the PA.

Yediot Ahronot speculates on the ongoing police investigation into ‎the gifts that the Netanyahus have received. The case “is in its critical stages but according to informed sources, it is not expected to be concluded before the beginning of the autumn at the earliest”.