Pushing for peace

Middle East charts its own path to peace as Syria returns to the Arab fold. [View in browser]( [Bloomberg]( Saudi Arabia’s Mohammed bin Salman used his appointment as defense minister in 2015 to intervene in Yemen’s war. Now, as prime minister, the crown prince has reinvented himself in the unlikely role of regional peacemaker. Key Reading: - [Arab League Set to Readmit Syria After a Decade of Isolation]( - [Why Efforts to End Syria War Have Gained New Impetus]( - [Hamas’s Expanding Reach Takes War on Israel to Multiple Fronts]( - [Russia Bids for Turkey-Syria Detente After Assad Mends Arab Ties]( - [Threats to Grand Plans Sent Saudi Prince to Seek Iran Deal]( Waning US influence has left a vacuum in the Middle East that the 37-year-old leader seems determined to fill. The result has been a surprising flurry of diplomacy. After months of high-level efforts, the Arab League agreed Sunday to readmit Syria, ending President Bashar al-Assad’s decade of isolation in defiance of US objections. Assad’s return to the Arab bosom reflects a broader shift that’s unfolding in the Middle East, where Gulf governments have concluded that the oil-for-security rubric that has defined their ties with the US since the end of World War II is over. Having failed to influence American policy on Iran’s nuclear program and the spread of its allied militias from Lebanon to Yemen, they’re charting their own path and building stronger ties with US rivals including Russia and China. Saudi Arabia is flexing its economic muscle, repeatedly shrugging off US pleas to boost oil production at OPEC+. It turned to Chinese mediation to restore ties with its Gulf rival, Iran. Having struggled to secure US weapons against Iran-backed Yemeni rebels, Saudi Arabia is leveraging the rapprochement to tamp down a conflict that’s threatened its oil facilities and distracted from MBS’s signature domestic overhaul. The crown prince has also revived ties with Turkey’s Recep Tayyip Erdogan and mended a rift with Qatar. Saudi Arabia announced this week it would reopen its diplomatic mission in Damascus. That notches up another win for Russia and Iran, whose foreign ministers met with their Turkish and Syrian counterparts in Moscow today. They helped Assad cling to power but need Arab backing to rehabilitate him diplomatically and eventually rebuild the war-shattered country. Years of US indecision on Syria are coming full circle, with a profound impact on its future role in the Middle East. — [Lin Noueihed]( Mohammed bin Salman and Russian President Vladimir Putin attend the G-20 summit in Buenos Aires in November 2018. Photographer: Ludovic Marin/AFP/Getty Images Listen to our Twitter Space discussion today at 8am ET (1pm London) on [the scorching heat]( that’s testing the ability of governments to protect public health and prevent disruptions to recovering economies. [Sign up]( for the new Bloomberg Washington Edition newsletter delivered weekdays. And if you are enjoying this newsletter, sign up [here](. Global Headlines Negotiations toward averting a first-ever US default will continue after President Joe Biden and congressional Republicans made [little tangible progress]( yesterday. Congressional aides and presidential staff will begin budget discussions in the coming hours, ahead of another meeting on Friday with Biden and congressional leaders including House Speaker Kevin McCarthy. - Biden left open the possibility he would [cancel upcoming travel]( to Japan for the Group of Seven summit, Australia, and Papua New Guinea if it was necessary to remain in Washington for talks over raising the debt ceiling. - Some of Wall Street’s most experienced traders warned of “unthinkable” [long-term implications]( from a default and argued the debt limit may need to be permanently repealed. A crackdown on perceived threats to national security by President Xi Jinping’s government is roiling the vast industry of consultants and researchers who help global investors understand China. The campaign is creating an increasingly challenging environment for businesses that provide such services and [threatening Bejing’s attempts]( to lure foreign capital into an economy showing increasing signs of strain. - Foreign Minister Qin Gang said China [would react]( “strictly and strongly” to any European Union penalties imposed on its companies for supplying Russia with so-called dual-use goods that can be used for both military and civilian purposes. US restrictions on China’s access to the machines critical to making computer chips are continuing to [take a toll]( on Taiwan, the island’s latest export data show. Taiwan shipped $151 million worth of chipmaking machines to China and Hong Kong in April, a 26% drop from a year earlier and the 10th straight month of declines. Imran Khan appeared at a special court today following a night of [high tension]( after the former Pakistani premier’s arrest by paramilitary troops led to clashes between his supporters and security forces. The sharp escalation of his confrontation with the government and the powerful military comes as Pakistan grapples with an economy in deep distress and could delay a much-needed International Monetary Fund bailout. - Read how Khan’s [fight for power]( is fueling the Pakistan crisis. Best of Bloomberg Opinion - [The Arab League Had to Readmit Syria’s Tyrant: Hussein Ibish]( - [Keeping the Lights On Is About to Get Less Deadly: Liam Denning]( - [Stop Hyping Up Ukraine’s Spring Offensive: Andreas Kluth]( Turks got a glimpse of life without Erdogan last month when the cameras unexpectedly cut away during a TV interview, with the president suffering from a stomach bug. While he reappeared after two days out of public view, [Onur Ant]( and [Selva Bahar Baziki]( write, the question [resonating]( worldwide is whether Turkish voters on May 14 will call time on his two decades in power in which he has molded the nation in his own image. Erdogan with his wife Emine during an election campaign rally in Istanbul on Sunday. Photographer: Moe Zoyari/Bloomberg Explainers You Can Use - [What Trump’s Many Legal Perils Mean for His 2024 Bid]( - [Why Have Canada and China Kicked Out Each Other’s Diplomats]( - [How Extreme Heat and Humidity Test Survival Limits]( Prime Minister Narendra Modi faces a [crucial test]( as India’s election season gathers steam. Local polls today in Karnataka, one of the country’s wealthiest states, will be an indicator of his popularity among swing voters — and his resilience ahead of national elections next year. His party holds a narrow majority in the state and the opposition Congress is within striking distance. Tune in to Bloomberg TV’s Balance of Power at 5pm to 6pm ET weekdays with Washington correspondents [Annmarie Hordern]( and [Joe Mathieu](. You can watch and listen on Bloomberg channels and online [here](. News to Note - Ukraine’s forces have the weapons, the training and the “right plans” ahead of an expected [counteroffensive](, US Secretary of State Antony Blinken said. - US Trade Representative Katherine Tai plans to meet China’s commerce minister in Detroit this month, sources say, in what would be the most senior [in-person encounter]( between the nations since the US shot down an alleged Chinese spy balloon. - G-7 finance ministers and central bank governors [gather in Japan]( this week facing a growing list of urgent issues, from the risk of more bank failures and the need for debt restructuring to the threat of a US default. - George Santos, the [embattled]( New York Republican congressman who took office despite fabricating much of his education and career record, has been indicted on federal charges, sources say. - A daughter of South Africa’s disgraced former President Jacob Zuma has been placed at the center of a Russia-backed [Twitter campaign]( to bolster support for the attack on Ukraine, according to a new study. And finally ... So many people are stealing electricity in Rio de Janeiro’s slums that the power company says it has been pushed into default, losing about $200 million last year alone from the illegal hookups. Things are so bad that Light SA says it’s [considering walking away]( from its contract, a move that would have the potential of throwing Brazil’s second-largest city into an electricity-supply crisis. Power lines in the South Zone of Rio de Janeiro. Photographer: Pedro Prado/Bloomberg 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 Bloomberg Politics newsletter. If a friend forwarded you this message, [sign up here]( to get it in your inbox. [Unsubscribe]( [Bloomberg.com]( [Contact Us]( Bloomberg L.P. 731 Lexington Avenue, New York, NY 10022 [Ads Powered By Liveintent]( [Ad Choices](