Strike on Iran

Welcome to Balance of Power, bringing you the latest in global politics. If you haven’t yet, sign up here.Israel’s reported attack on Iran s [View in browser]( [Bloomberg]( Welcome to Balance of Power, bringing you the latest in global politics. If you haven’t yet, sign up [here](. Israel’s [reported attack on Iran]( suggests it was designed not to widen the parameters of the conflict in the region. Media in both countries appeared to downplay the severity of the incident, which followed Tehran’s rocket and drone barrage against Israel on April 13 — the first attack from Iranian soil. That assault, in turn, was to express anger at the April 1 killing of two senior generals at Iran’s consulate in Damascus. While tit-for-tat responses between the two sides may escalate, early signs are that the symbolic nature of the action could open the door to de-escalation, at least in the short term. There was no damage to nuclear facilities in today’s target, the central city of Isfahan, and Iran [called the operation a failure](, suggesting that it doesn’t see an immediate need to respond. Despite its dangers, the confrontation has proved useful to both sides. For Iran’s leaders, standing up to Israel helps boost their popularity after months of protests over worsening living conditions in the Islamic state. Israeli Prime Minister Benjamin Netanyahu [has faced pressure]( in his far-right coalition for a firm response, while Washington and other allies urged restraint. The hawkish national security minister, Itamar Ben Gvir, suggested he wasn’t happy with his country’s apparent action: “Weak,” he said in a one-word post on X in Hebrew. Yet Israel’s increasingly open shadow war with Iran has helped to divert attention from the ongoing offensive against the militant group Hamas in Gaza, with images of civilian deaths and widespread destruction in the Palestinian enclave bleeding international support for the Jewish state. Also, Washington and its allies came to Israel’s aid by helping to destroy most of the 300 Iranian drones and missiles unleashed last week. And just yesterday the US vetoed a proposal at the United Nations Security Council to make Palestine a full-fledged member of the world body. The threat of a wider conflagration in the Middle East remains real. The ball is back in Iran’s court.—[Abeer Abu Omar]( An Israeli Iron Dome missile defense system in the southern Negev desert on April 14. Photographer: Ahmad Gharabi/Getty Images Global Must Reads Almost 1 billion Indians began voting today in elections due to last more than six weeks, weighing up whether to hand Prime Minister Narendra Modi a third five-year term, [an outcome few doubt](. Voting in [the world’s biggest election]( takes place in seven phases until June 1 to accommodate the complicated logistics involved in getting ballots to everyone, and the results won’t be known until June 4. Modi at a campaign event on April 16. Photographer: Biju Boro/AFP/Getty Images In his six years as Mexico’s president, Andres Manuel Lopez Obrador gave the military two important jobs: build infrastructure works to supercharge the economy and rein in violent crime. As [Andrea Navarro]( writes, by the end of his presidency, he will have accomplished only one — and left the other [worse than ever](. After taking power under Nelson Mandela in 1994, the African National Congress has defined South African politics by ending apartheid and opening up the mainstream economy to the Black majority. But ahead of May 29 elections, [voters are running out of patience]( with rampant poverty and mass unemployment, power blackouts and endemic crime and corruption. Conflict has simmered in eastern Democratic Republic of Congo since the mid-1990s in the aftermath of the Rwandan genocide, exploding into two wars that left millions of people dead. But as [Simon Marks]( and [Neil Munshi]( write, intensified fighting involving rebels backed by Rwanda, long-running ethnic tensions and at least five national armies has [now reached a peak]( not seen in at least a decade. As Ukraine’s ammunition stocks dwindle, some of the country’s key allies [are expressing concern]( that the government in Kyiv may not be able to defend itself for much longer against Russian forces. US Central Intelligence Agency Director William Burns called the situation dire and said Ukraine could lose by the end of the year. Mayors of Colombia’s biggest cities [ordered public officials]( to work as normal, defying President Gustavo Petro’s call for a civic day to save water in the midst of a severe drought affecting the country. Backing for South Korean President Yoon Suk Yeol [dropped to its lowest]( since he took office in 2022 after a [stinging loss]( in a parliamentary election last week that left him in a weakened positioned for the remaining three years of his term. Pushing through a UN General Assembly vote to continue expert monitoring of North Korea’s nuclear arms development would require a “tremendous” effort and it’s unclear where funds would be found to have think tanks take up the role, [according to the US Ambassador to the UN](. Washington Dispatch The International Monetary Fund and World Bank Spring Meetings in Washington will largely conclude today, and some 10,000 delegates from around the world will begin to disperse. While the central bank chiefs, finance ministers, business executives, economists and other participants tried to present an air of cordial cooperation, [one comment]( from the head of the IMF, Kristalina Georgieva, seemed to stand out: “All eyes are on the US.” “When the dollar is up, many other currencies are down,” she said on [Bloomberg Surveillance](. “What that leads to is concern about how long that may last. That’s what I hear from countries. How long would the Fed be stuck with higher interest rates.” She emphasized, however, that the Federal Reserve was taking the right approach: “I don’t think we should gear up for a rapid decline in interest rates.” The meetings this week also highlighted how domestic political strife has hindered President Joe Biden’s administration regarding international pledges. For instance, a plan to raise billions of dollars in additional resources for the World Bank to counter China’s lending to the developing world has stalled less than nine months after Biden made it a centerpiece of his meetings with fellow Group of 20 leaders last year. The proposal has failed to win congressional approval or attract similar bids from other allies in the G-20. One person to watch today: Biden will address the International Brotherhood of Electrical Workers’ Construction and Maintenance Conference in Washington. [Sign up for the Washington Edition newsletter]( for more from the US capital and watch Balance of Power at 1 and 5 p.m. ET weekdays on Bloomberg Television. Chart of the Day Nigeria’s economy, which ranked as Africa’s largest in 2022, is set to slip to fourth place this year, while Egypt, which held the top position in 2023, is projected to fall to second behind South Africa, [IMF forecasts show](. Nigeria and Egypt’s fortunes have dimmed as they deal with high inflation and a plunge in their currencies. And Finally The Palais Stoclet in Brussels is one of Belgium’s most significant private villas, a gem of Vienna Secession architecture and a key forerunner of the art deco movement. It was added to the [UNESCO list]( of World Heritage sites in 2009 but has been mostly shut to the public for more than two decades. Visiting [may soon become possible]( if lawmakers vote today to compel the Stoclet descendants to open it up for about two weeks a year. The dining room of the Stoclet Palace, featuring friezes by Gustav Klimt. Source: CIVA Collection, Brussels Pop quiz (no cheating!) Which company fired 28 employees after they were involved in protests against Project Nimbus, a $1.2 billion joint contract with Amazon.com to provide the Israeli government with AI and cloud services? Send your answers to balancepower@bloomberg.net. More from Bloomberg - Check out our [Bloomberg Investigates]( film series about untold stories and unraveled mysteries - [Bloomberg Opinion]( for a roundup of our most vital opinions on business, politics, economics, tech and more - [Next Africa](, a twice-weekly newsletter on where the continent stands now — and where it’s headed - [Economics Daily]( for what the changing landscape means for policy makers, investors and you - [Green Daily]( for the latest in climate news, zero-emission tech and green finance - Explore more newsletters at [Bloomberg.com](. Follow Us Like getting this newsletter? 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