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A new pragmatism

The recent news from the Middle East makes for familiarly gloomy reading.

Palestinians and Israelis are clashing in Jerusalem and the Gaza Strip. U.S. and Iranian boats are in showdowns near the Strait of Hormuz. Iran's supreme leader is tweet-storming the resistance against what he calls the "Zionist regime." Saudi Arabia is parrying attacks by air and sea from Yemen-based Houthis.

Yet beneath the surface, a growing wariness of long-running conflicts has given way to quiet diplomacy, and with it the promise of patching over deep rivalries.

Iraq, the poster child of Middle East instability for two decades, is playing the role of peacemaker, brokering talks between Iran and Saudi Arabia and seeking to mediate an end to the war in Yemen.

The Turks are working to patch up relations with Egypt, Saudi Arabia and the United Arab Emirates after years of hostility that included backing opposite sides in regional wars and revolutions.

Qatar's ruler and Saudi Arabia's crown prince met in Jeddah this week, as the two nations at the heart of the rift that's divided the Arab world work to fully restore diplomatic ties.

Covid-related travel restrictions aside, Israelis are now free to holiday in Dubai, and Emiratis in Tel Aviv. Sudan, Morocco, Oman and Bahrain are opening up to Israel as part of the Abraham Accords negotiated with the backing of the Trump administration.

Most importantly, the U.S. and Iran are inching closer to reviving the 2015 nuclear deal that Donald Trump abandoned.

If that succeeds, President Joe Biden could be looking at a very different Middle East from the one his predecessors faced — one where statesmanship and de-escalation are replacing conflict and rivalry.  Benjamin Harvey 

Israeli air strikes in the Gaza Strip yesterday.

Photographer: Mahmud Hams/Getty Images

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Global Headlines

Cyber sleuths | A small group of private companies with support from several U.S. agencies disrupted ongoing cyberattacks against Colonial Pipeline and more than two dozen other victims, sources say. The firms, which included operators of U.S.-based servers used by the hackers, helped Colonial recover some stolen data and stop the thieves from moving it to Russia, Jordan Robertson and William Turton write.

  • For years, security experts have offered recommendations to governments, companies and other organizations to ward off cyberattacks, only to be largely ignored.
  • Oil fell as traders monitoring the closure of the pipeline saw it as becoming only a temporary disruption.

Xinjiang review | Daqo New Energy has shortlisted global auditors for its operations amid allegations of the use of forced labor in China's Xinjiang region. The U.S.-listed supplier to the solar industry, which denies it's involved in the practice or work programs the U.S. says oppress Muslim Uyghurs, opened up a Xinjiang plant this week to a small group of investors, analysts and media.

  • U.S. businesses suffer at the local level when friction with China escalates, the American Chamber of Commerce in China warned.
  • Read how China's factory-gate prices surged in April on gains in commodity prices, adding to global inflation concerns.

China, the world's most populous nation, faces the prospect of declining numbers in the coming years. That adds pressure on Beijing to maintain economic growth even as the workforce shrinks.

Legal wrangles | India's Covid-19 wave calls for discretion on the part of policy makers to tackle the crisis, Prime Minister Narendra Modi's government told the Supreme Court. The administration has been sued in various courts for oxygen supply shortages, as official deaths near 250,000. "Any overzealous, though well-meaning judicial intervention may lead to unforeseen and unintended consequences," it said in its May 9 affidavit.

  • Read how Taiwan and Singapore are reimposing curbs as small spikes in cases test some of the most successful places at containing Covid-19.

Venezuelan shift | After years of hostility, the U.S.-Venezuela relationship is under review, with Caracas taking conciliatory steps and Washington reassessing its sanctions policy. While the Biden administration still publicly rejects President Nicolas Maduro and supports opposition leader Juan Guaido, the U.S. is examining its approach anew as it hopes to stop the spread of destabilizing forces in the region.

Tycoon ties | Zimbabwe plans a multibillion-dollar project called Kuvimba Mining House to hold some of the nation's most valuable mines, whose revenue could help a moribund economy. While the government won't say how it paid for the mines, Felix Njini and Antony Sguazzin report the core assets were recently owned by or tied to Kudakwashe Tagwirei, a politically connected businessman and presidential adviser sanctioned for corruption by the U.S.

Kudakwashe Tagwirei.

Photographer: Jekesai Njikizana/AFP/Getty Images

What to Watch

  • The far-right Sweden Democrat party may have the votes to help the opposition win next year's elections, with signs that conservative politicians will be tempted to cut a deal to give the anti-immigrant group a say in the government.
  • French Finance Minister Bruno Le Maire's talk this week of yet more stimulus is a risky strategy as voters grow concerned over massive public debt.
  • Read how Taiwan chip giant TSMC is stuck in the middle of a global panic over semiconductor supply.
  • Biden will trade ideas with governors about how to vaccinate more Americans, after the number of people signing up for shots fell sharply in April.

And finally ... Myanmar's military chiefs use opaque conglomerates to control at least 110 businesses at the heart of the economy that bring in billions of dollars, according to the United Nations. Western governments have slapped fresh sanctions on the companies and military leaders since a February coup, but officials at the firms downplay the impact of political or commercial pressure. Business, they say, is doing fine.

A demonstration against the coup in Yangon on May 7.

Photographer: STR/AFP/Getty Images

 

 

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