Iran remains a nuclear headache

Iran’s nuclear inventory is growing [View in browser]( [Bloomberg]( Welcome to Balance of Power, bringing you the latest in global politics. If you haven’t yet, sign up [here](. A tragedy for Iran’s hardline clerics hasn’t caused its nuclear engineers to miss a step. The International Atomic Energy Agency verified yesterday that [Iran’s stockpile of uranium]( enriched to just-below bomb grade grew by almost a fifth, even as the Persian Gulf nation mourns the [deaths of its president]( and foreign minister this month in a helicopter crash. The Islamic Republic now has sufficient nuclear material to fuel a handful of warheads in short order, should its [leadership take the political decision]( to pursue the weapons. Current and former Iranian officials have recently warned their nuclear doctrine, which until now has officially renounced atomic arms, could change if the country is threatened. Tit-for-tat missile strikes between Israel and Iran have added urgency to the IAEA’s search to uncover the truth of Iran’s nuclear ambitions. High-ranking IAEA officials who met with the late Foreign Minister Hossein Amirabdollahian on May 6 in Tehran had voiced cautious optimism Iran was ready to boost cooperation with monitors. But when a senior delegation arrived two weeks later to hammer out details — with rescuers still searching for the missing presidential helicopter — Iran told the IAEA it wouldn’t be appropriate to hold discussions, according to an eight-page diplomatic note seen by Bloomberg. Iran dismissed the team on May 21 with a vague pledge to resume work at an undetermined time. Iran’s rapidly rising fissile-material inventory and lack of cooperation now shifts focus to IAEA’s June 3 board meeting in Vienna. The US has pledged to start dialing up diplomatic pressure unless the country comes clean on a years-long investigation into uranium traces discovered at locations they shouldn’t have been. Some European nations already wanted to censure Tehran last quarter. Western nations expressed sympathy with Iranians last week, but they are also preparing to show their patience is running out. —[Jonathan Tirone]( Raisi visits the holy shrine of Hazrat Ruqayya on May 4, 2023, in Damascus, Syria. Photographer: Matin Ghasemi/ATPImages/Getty Images Global Must Reads Tensions in the Middle East rose sharply after the [death of an Egyptian soldier]( in a clash with Israeli troops at a Gaza border crossing yesterday and an Israeli airstrike killed an estimated 45 Palestinians at a camp for displaced people in the city of Rafah. While Israeli Prime Minister Benjamin Netanyahu called the attack a “tragic mistake,” French President Emmanuel Macron said he was “outraged” and the White House said the images were “heartbreaking.” Palestinians gather at the site of the Israeli strike yesterday. Photographer: Eyad Baba/AFP/Getty Images As South Africa heads into its tightest election since apartheid ended in 1994, the ruling African National Congress is facing competition like never before. The three provinces — Guateng, KwaZulu-Natal and Western Cape — that are home to the nation’s biggest cities have different political dynamics and [will be the main determinants]( of the winners and losers in tomorrow’s vote. Telegram has become a key weapon for pro-Kremlin accounts to spread disinformation aimed at undermining support for Ukraine, while Russian intelligence officers have used it to recruit criminals to carry out acts of sabotage across Europe. They exploit the messaging app’s key advantage: [It’s largely unaccountable](, antagonizing officials ahead of next month’s European Parliament elections in which far-right parties, some of which are pro-Russia, are forecast to make gains. Newsroom staff at Slovakia’s most-watched private broadcaster accused the outlet of [caving to political pressure]( as tension over media independence intensified in the aftermath of the assassination attempt on Prime Minister Robert Fico. A letter signed by 95 TV Markiza employees and collaborators backed a political talk show host, Michal Kovacic, who complained on air of the “Orbanization” of Slovak media, a reference to repressive Hungarian Prime Minister Viktor Orban. A North Korean rocket carrying a spy satellite blew up shortly after liftoff in a setback for leader Kim Jong Un. Video footage provided by South Korea’s military and Japanese public broadcaster NHK purportedly showed the rocket [breaking up in a fireball]( after its launch last night. North Korea’s official media said the trouble was caused by problems with a newly developed engine. Thousands of protesters gathered again in Taipei as opposition lawmakers try to push through legislation giving them greater investigative powers and [effectively curbing the authority]( of Taiwanese President Lai Ching-te. UK Prime Minister Rishi Sunak promised pensioners a tax cut if his Conservatives [upset the odds]( and win the general election on July 4, the latest gambit to try to shore up the core Tory vote. Pope Francis allegedly used an offensive slur to refer to LGBTQ people in conversations with bishops [over allowing gay men]( into seminaries, even as he stressed the need to welcome everyone.  Argentine President Javier Milei fired his cabinet chief, Nicolas Posse, as the government’s major economic reform bill has stalled in congress, marking the [highest-level departure]( since Milei took office Dec. 10. Washington Dispatch Washington emerges from the Memorial Day holiday weekend with [a new crisis]( arising from the Israel-Hamas war. The Israeli airstrike on Rafah will almost certainly heighten the discord between President Joe Biden and the progressive flank of the Democratic Party. At the same time, the Egyptian border guard’s death could entangle the US in a dispute between two Middle East allies. In his address to graduates of the US Military Academy at West Point on Saturday, Biden cited efforts to deliver humanitarian assistance to civilians in Gaza while his administration engaged in “urgent diplomacy to secure an immediate cease-fire that brings hostages home.” For much of the war, the president has tried to strike a balance by showing strong support for Israel while urging the Netanyahu government to prevent civilian casualties. While left-wing Democrats accuse him of bearing some responsibility for the bloodshed, presidential contender Donald Trump and other Republicans say he’s selling out Israel. It’s a difficult position that will likely become even complicated in the days ahead. One thing to watch today: The prosecution and the defense at Trump’s criminal trial in Manhattan plan to make closing arguments. [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 Environmental, social and governance issues used to be near the top of just about every senior executive’s talking points just a few years ago. Now, [tired of drawing flak from activists]( on either side of the political spectrum, many CEOs have decided to bottle it up — particularly in the US. Transcripts of financial presentations by the 100 biggest European and American-traded companies during the latest results season show a sharp drop in references to ESG concerns. And Finally When Cyclone Idai hit in 2019, it damaged or obliterated most of the buildings in Beira, Mozambique, and killed more than 1,000 people in southern Africa. Four years later, the coastal city fared better when Cyclone Freddy pummeled the region. [An early warning system]( and other proactive measures by residents have in recent years helped limit the threat from storms, making it an example of how urban centers can better prepare for looming disasters. Debris and destroyed buildings in the Praia Nova neighborhood in Beira. Photographer: Guillem Sartorio/Bloomberg 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? [Subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and subscriber-only insights. Want to sponsor this newsletter? [Get in touch here](. You received this message because you are subscribed to Bloomberg's Balance of Power newsletter. 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