The next crisis

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Even the crisis in Afghanistan hasn't been able to diminish world concern over Iran's nuclear program. When Israel's new prime minister, Naftali Bennett, and U.S. President Joe Biden hold their first meeting at the White House today, they're likely to reveal how much they disagree on the best way to halt the Islamic Republic's atomic ambitions. While Bennett rejects reviving the 2015 nuclear deal with Tehran and his government has warned of possibly carrying out attacks against installations, Biden favors a diplomatic accord. Israel's position is especially sensitive since Bennett's predecessor, Benjamin Netanyahu, helped convince Donald Trump to renounce the deal in mid-2018 with no apparent fallback plan if Iran pursued a bomb. Negotiations between Tehran and world powers on restarting the accord in return for U.S. sanctions relief, including on oil exports, have stalled since hardline cleric Ebrahim Raisi was elected Iran's president in June. The return to talks isn't expected to get any easier now that an anti-western conservative has been installed as foreign minister. The top American negotiator repeated yesterday Washington is prepared to make compromises "on difficult issues" if Iran does the same. Yet, as Jonathan Tirone reports, Tehran's restrictions on access to its nuclear sites in retaliation for sanctions has prompted international inspectors to develop contingency plans, such as updating an agreement on frequency of visits, that they hope will plug knowledge gaps should statesmanship fail. In the meantime, Bennett's strategic vision for confronting Iran is taking a parallel tack: strengthening Israel's ties with other countries in the region, such as the United Arab Emirates, that are hostile to Tehran. Iran's leaders, in turn, are courting allies in Beijing and Moscow. Israel and Iran both have new governments, but the intractable nature of their conflict is hardening. Biden's next crisis may be just around the corner. — Gwen Ackerman

The Natanz Fuel Enrichment Plant in Iran in 2015. Photographer: DigitalGlobe/ScapeWare3d/Maxar Click here to follow Bloomberg Politics on Facebook and tell us how we're doing or what we're missing at balancepower@bloomberg.net.

Global Headlines

Staying put | The U.S. knows of about 1,500 Americans still in Afghanistan but doesn't believe all of them are seeking to leave, Secretary of State Antony Blinken said. The U.S. and the U.K. warned citizens to avoid traveling to the airport in Kabul due to threats of terror attacks as the Biden administration faces criticism for potentially abandoning Americans there. Environmental ambitions | U.S. House Democrats are pressing for spending some $31.5 billion on conservation programs, environmental analysis and cleanup of abandoned mines as part of the proposed $3.5 trillion budget reconciliation plan. A document prepared for the House Natural Resources Committee and seen by Bloomberg News calls for devoting $25 million each to endangered butterflies, freshwater mussels and desert fish. Ripple effect | China's crackdown on industries from tech to education is already rippling across the world's No. 2 economy. As we report here, while it's difficult to quantify the direct effect of regulatory restrictions, the impact is being felt in spheres from property to borrowing to China's push to cut carbon output. Chinese technology shares fell sharply today, snapping a three-day rally as earnings from a number of firms failed to meet investor targets. The supply chain crunch now looks like it will last into next year as the delta variant upends factory production in Asia and disrupts shipping. Manufacturers are being forced into bidding wars to get space on vessels, prompting some exporters to raise prices or simply cancel shipments. U.S. ban | The European Union will discuss today whether to reimpose curbs on visitors from the U.S., where the number of new Covid-19 cases — 507 per 100,000 people at present — far exceeds the limit of 75 set out in the bloc's guidelines. A move to bar travelers from the world's largest economy would come as a blow to airlines and travel firms pressing for a full reopening of lucrative transatlantic routes. Best of Bloomberg Opinion Who Will Be the Taliban Whisperers?: Bobby Ghosh & Hussein Ibish Biden's Final Afghanistan Countdown Not So Final: Opinion Wrap Pelosi Is Poised for Another Major Victory: Jonathan Bernstein Keyboard nationalists | Online users in China are harassing anyone they deem critical of the government, scouring the web for posts or individuals they see as unpatriotic or tools of foreign influence. This Chinese take on cancel culture is fueled by growing national pride and increasing hostility to criticism from abroad. What to Watch  A federal judge in Michigan ordered former Trump campaign attorney Sidney Powell and other Republican Party lawyers to pay legal fees for the state and the city of Detroit for filing a lawsuit to overturn the 2020 election using false claims about voter fraud. Japan's Yoshihide Suga moved closer to being re-elected ruling party leader and remaining prime minister after a powerful faction backed him, even as a record wave of Covid-19 infections pushed his public support to new lows. Prime Minister Justin Trudeau took a populist turn in Canada's election campaign, pledging to impose a 3% surtax on the nation's big banks and insurers. Peru's congress is due to vote today on whether to approve President Pedro Castillo's cabinet, amid opposition pushback against his slate of candidates. And finally ... Office workers have resented the grind of desk life for more than a century, but a year and a half of working from home under the coronavirus have triggered a radical transformation of professional life. As Libby Cherry reports, economists say the change has weakened the gravitational pull of city centers and is already jump-starting economic productivity and accelerating innovation. With the vast majority of the City of London's 500,000 office staff working from home, once-bustling streets have been largely deserted. Photographer: Tom Skipp/Bloomberg

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