US optimism over Gaza truce

Blinken pursues a truce in the war in Gaza [View in browser]( [Bloomberg]( Welcome to Balance of Power, bringing you the latest in global politics. If you haven’t yet, sign up [here](. Standing on a searing Cairo tarmac after meeting with Egypt’s president about the latest efforts to end the Israel-Hamas war, US Secretary of State Antony Blinken told reporters that pessimism about progress was “understandable.” Blinken is crisscrossing the Middle East on his eighth trip to the region since the fighting erupted in October. Once again, peace seems just out of reach. With President Joe Biden announcing a three-stage cease-fire proposal and the United Nations Security Council [backing the deal](, it seems like momentum is building toward ending the devastating conflict in Gaza. WATCH: The Security Council resolution passed by a 14-0 vote yesterday with Russia abstaining. Source: Bloomberg Blinken blamed the holdup entirely on Hamas, the US-designated terrorist group that sparked the war when it killed about 1,200 people and kidnapped 250 on Oct. 7. Today, he repeated his view that Israeli Prime Minister Benjamin Netanyahu [supports the deal]( and called Hamas’s initial response to the UN resolution a “hopeful sign.” It’s not that simple. Netanyahu has vowed to crush the militant group and its capacity to carry out future attacks on Israel. Critics say freedom of the hostages should be the priority. The [resignation of the centrist Benny Gantz]( from Netanyahu’s war cabinet may complicate things, with hard-right ministers vying to replace him and push their agenda of expanding the war against Hezbollah militants on Israel’s northern border. A temporary cease-fire that frees some hostages is fine for Israel, but a permanent one would prevent Netanyahu from eliminating Hamas, which steadfastly opposes the release of the captives before securing a lasting truce. US military backing for Israel and the rising death toll in Gaza are damaging Biden’s support, especially among young progressive voters, ahead of the November presidential election. Optimism is in short supply. Yet as protesters chanted “We trust you, Blinken, seal the deal!” outside his luxury hotel in Tel Aviv, the US envoy has few other options. — [Iain Marlow]( Israelis demonstrate for the release of hostages in Tel Aviv on Saturday. Photographer: Kobi Wolf/Bloomberg Global Must Reads South Korea’s military said it fired warning shots after more than 20 North Korean soldiers briefly crossed into its territory on Sunday in a move that [could increase tensions]( along one of the world’s most heavily militarized borders. Hostility between the rivals has been on the rise since last month when North Korea began [sending hundreds of balloons]( carrying trash over the border after complaining about Seoul conducting surveillance flights. A 28-year-old fond of selfies may become France’s next prime minister. Jordan Bardella would likely assume the role if Marine Le Pen’s National Rally — he’s her political heir — wins a legislative majority next month after President Emmanuel Macron [called a snap election]( following his party’s bruising defeat in Sunday’s European Parliamentary vote. Listen: On this special episode of Voternomics, we discuss the European vote fallout, the fate of the Tories and how Nebraska may pick the next US president. President Volodymyr Zelenskiy said Ukraine’s battered energy infrastructure will be the focus of a conference in Berlin today co-hosted with German Chancellor Olaf Scholz to help mobilize international support [for reconstruction](. The gathering brings together government officials and company executives and follows similar meetings held in 2022 in Lugano and London last year. Russia resumed extensive attacks on Ukraine’s power network last month. Indian Prime Minister Narendra Modi has chosen continuity in his cabinet to run the world’s [fastest-growing major economy]( after recent elections. Nirmala Sitharaman was reappointed finance minister, while those at home affairs, external affairs, commerce and transportation all kept their posts. After losing its outright majority, Modi’s Bharatiya Janata Party will need to do more to tackle unemployment, rising living costs and widening inequality. Nirmala Sitharaman. Photographer: Prakash Singh/Bloomberg Venezuelan President Nicolás Maduro says he’s willing to sign an agreement to recognize the results of next month’s presidential election despite polls still [showing him trailing]( the opposition’s little-known candidate, Edmundo González. Yet Maduro has been consistently backsliding on the commitments of a US-brokered deal that provides guarantees for a free and fair vote. European officials are in talks to keep gas flowing through a key Russia-Ukraine pipeline, as they race to [prevent Moscow’s war]( further damaging the continent’s energy supplies. A military aircraft carrying Malawian Vice President Saulos Chilima and nine other passengers [has been missing]( since yesterday. A prominent UK judge who resigned from Hong Kong’s top court last week warned of “grave danger” to [the rule of law]( in the financial hub in a scathing critique of China’s crackdown on dissent. Former South African President Jacob Zuma’s party asked the nation’s top court to [stop parliament from convening](, three days before legislators are scheduled to elect the president. Washington Dispatch Donald Trump was interviewed yesterday by a New York probation officer whose sentencing report will help a judge [decide how much time](, if any, he will spend behind bars for falsifying business records, a source says. The meeting lasted 30 minutes, and Trump joined virtually from his Mar-a-Lago home in Florida, according to the source. The presumptive Republican presidential candidate, who turns 78 on Friday, is scheduled to be sentenced in New York on July 11. Later this week, the former president will travel to Washington for two crucial meetings. He’ll gather [with Senate Republicans]( on Thursday to discuss legislative strategies if he wins a second term. Then Trump is scheduled to attend an event with chief executive officers hosted by the Business Roundtable. One thing to watch today: Jurors deciding whether the president’s son Hunter Biden illegally bought and possessed a gun will continue deliberating in Delaware. [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 UK Prime Minister Rishi Sunak got [mixed news on the economy]( today ahead of his long-shot bid to retain office after the July 4 general election. Unemployment unexpectedly rose to the highest in more than 2 1/2 years while pressures for higher pay eased in the private sector, giving him a chance to say the cost-of-living squeeze is starting to abate. And Finally A Russian intelligence operative who’s leading a Kremlin disinformation campaign in Africa has helped run [influence operations]( in Europe for years, according to government sources and documents seen by Bloomberg. As [Alberto Nardelli]( reports, the documents on Artem Kureyev’s activities provide deep insight into the methods of Russian influence campaigns in Europe. The Group of Seven nations and the EU have made combating such disinformation operations a top priority ahead of a leaders’ summit in Italy this week. Ukrainian soldiers in Kharkiv fire artillery toward the Russian border. Photographer: Jose Colon/Anadolu/Getty Images 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. 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