JERUSALEM/BEIRUT  — Iran said on Wednesday its missile attack on Israel, its biggest military assault on the country, was over, barring further provocation, while Israel and the United States promised to hit back as fears of a wider war intensified.

Israel will launch a “significant retaliation” within days that could target oil production facilities inside Iran and other strategic sites, US news website Axios reported on Wednesday citing Israeli officials.

Despite calls for a ceasefire from the United Nations (UN), the United States and the European Union, fighting between Israel and the Lebanon-based Hezbollah continued on Wednesday.

Israel renewed its bombardment of Beirut’s southern suburbs, a stronghold of the Iran-backed group, with at least a dozen airstrikes against what it said were targets belonging to the group.

Large plumes of smoke were seen rising from parts of the suburbs. Israel issued new evacuation orders for the area, which has largely emptied after days of heavy strikes.

Hezbollah said it confronted Israeli forces infiltrating the Lebanese town of Adaisseh early on Wednesday and forced them to retreat.

Iran said Tuesday’s assault on Israel was solely aimed at military facilities. Iran’s state news agency said three Israeli military bases had been targeted.

Tehran said its assault was a response to Israeli killings of militant leaders and aggression in Lebanon against Hezbollah and in Gaza.

“Our action is concluded unless the Israeli regime decides to invite further retaliation. In that scenario, our response will be stronger and more powerful,” Iranian Foreign Minister Abbas Araqchi said in a post on X early on Wednesday.

Israeli Prime Minister Benjamin Netanyahu has vowed to strike back. “Iran made a big mistake tonight — and it will pay for it,” he said at the outset of an emergency political security cabinet meeting late on Tuesday, according to a statement.

Washington said it would work with longtime ally Israel to ensure Iran faced “severe consequences” for Tuesday’s attack, which Israel said involved more than 180 ballistic missiles.

US Secretary of Defense Lloyd Austin spoke to Israeli Defense Minister Yoav Gallant late on Tuesday and said Washington was “well-postured” to defend its interests in the Middle East, the Pentagon said in a statement.

“The minister and I expressed mutual appreciation for the coordinated defense of Israel against nearly 200 ballistic missiles launched by Iran and committed to remain in close contact,” Austin said separately in a post on X.

US Navy warships fired about a dozen interceptors against Iranian missiles headed toward Israel, the Pentagon said. Britain said its forces played a part “in attempts to prevent further escalation in the Middle East,” without elaborating.

The Pentagon said Tuesday’s airstrikes by Iran were about twice the size of April’s assault by Iran on Israel.

‘THE RESPONSE WILL BE PAINFUL’
Israel activated air defenses against Iran’s bombardment on Tuesday and most missiles were intercepted “by Israel and a defensive coalition led by the United States,” Israeli Rear Admiral Daniel Hagari said in a video on X.

“Iran’s attack is a severe and dangerous escalation,” he added.

Iran’s forces on Tuesday used hypersonic Fattah missiles for the first time, and 90% of its missiles successfully hit their targets in Israel, the Revolutionary Guards said.

In a statement on state media, the general staff of Iran’s armed forces said any Israeli response would be met with “vast destruction” of the latter’s infrastructure.

It also said it would target the regional assets of any Israeli ally that got involved.

Fears that Iran and the US could be drawn into a regional war have risen with Israel’s growing assault on Lebanon in the past two weeks, including the start of a ground operation there on Monday, while its conflict in the Gaza Strip is a year old.

US President Joseph R. Biden expressed full US support for Israel and described Iran’s attack as “ineffective.”

Vice-President Kamala Harris, the Democratic presidential candidate, backed Mr. Biden’s stance and said the US would not hesitate to defend its interests against Iran.

“We will act. Iran will soon feel the consequences of their actions. The response will be painful,” Israel’s UN Ambassador Danny Danon told reporters.

QR CAN START HERE
The White House similarly promised “severe consequences” for Iran and spokesman Jake Sullivan told a Washington briefing the United States would “work with Israel to make that the case.”

Sullivan did not specify what those consequences might be.

In a statement, French President Emmanuel Macron said he strongly condemns Iran’s new attacks on Israel, adding that in a sign of its commitment to Israel’s security France mobilized its military resources in the Middle East on Wednesday.

The United Nations Security Council scheduled a meeting about the Middle East conflict for Wednesday, and the European Union called for an immediate ceasefire.

South Korean President Yoon Suk Yeol met with his national security and economic advisers on Wednesday over the Middle East conflict and called for a swift but measured response to any impact on the country’s energy supply, his office said.

Nearly 1,900 people have been killed and more than 9,000 wounded in Lebanon in almost a year of cross-border fighting, most in the past two weeks, Lebanese government statistics showed on Tuesday. — Reuters

MEXICO CITY — Claudia Sheinbaum was sworn in as Mexico’s first woman president on Tuesday, vowing to bolster women’s rights and ensure Latin America’s No. 2 economy remains a secure destination for international investment.

Sheinbaum, a 62-year-old scientist and former mayor of Mexico City, took the oath of office and received the presidential sash in a boisterous ceremony in Mexico’s Congress, which marks the start of her six-year term.

“It’s time for transformation, it’s time for women,” she said, her voice rising with emotion.

“I’m a mother, a grandmother, a scientist and a woman of faith, and from today, by the will of the Mexican people, the president,” she said.

Ms. Sheinbaum also used her first speech as head of state to address investor concerns after the passing of a sweeping judicial reform pushed by her predecessor, Andres Manuel Lopez Obrador.

She reiterated that the central bank would be autonomous and told investors: “Rest assured that the investments of national and foreign shareholders will be safe in our country.”

Alberto Ramos, head of Goldman Sachs Latin American economic research, said Ms. Sheinbaum will be judged on whether she can construct “a predictable and investment-friendly policy and regulatory framework.”

“Disciplined management of the budget and of state-owned enterprises, progress on public security, and safe-guarding the integrity of key institutions will be key to preserving market sentiment and sovereign debt ratings,” Mr. Ramos said, emphasizing the importance of heavily-indebted state oil company Pemex.

Ms. Sheinbaum pledged that the Mexican oil giant will look to maintain daily oil production at 1.8 million barrels, in line with current output.

The November presidential elections in the United States, Mexico’s largest trading partner, could add to market volatility, especially if former President Donald Trump, who has vowed to increase tariffs on Mexican goods, wins.

Ms. Sheinbaum’s government will present its first budget before Nov. 15, which is expected to be highly scrutinized for clues on whether she will make good on commitments to reduce the fiscal deficit to 3.5% of gross domestic product from 5.9%, where it is predicted to close the year. 

In an afternoon speech in the capital’s historic Zocalo square, she offered 100 pledges, ranging from expanding public healthcare and education to building 1 million new homes, capping prices for key goods and sending Congress a package of reforms to battle gender violence and discrimination.

Ms. Sheinbaum said she will unveil the package on Thursday, and said it will include proposed changes to the constitution and seek to reduce impunity and protect women in a nation that records some of the world’s highest femicide rates.

“Our guide is the happiness and wellbeing of the people,” she said. “I pledge to you to keep making history.”

CONTINUITY WITH CHANGE?
Mr. Lopez Obrador, whose six-year term began in late 2018, managed to double Mexico’s minimum wage, reduce poverty and unemployment, broaden the base of social programs and oversee a previous strengthening of the peso. Touting these successes boosted his popularity and helped usher Ms. Sheinbaum, his protégée, to a landslide victory in the June elections.

Mexican presidents are limited to serving a single six-year term.

Ms. Sheinbaum, however, who has promised “continuity with change,” will inherit the largest budget deficit since the 1980s and lagging economic growth.

Experts say Mexico’s economy will require a tax reform to increase revenues, though Ms. Sheinbaum has for now ruled out a sweeping tax overhaul.

Instead, she has said she will pursue other options, including improving the efficiency of tax collection at customs.

Ms. Sheinbaum “will have to deliver an important fiscal consolidation if she wants to keep the positive view that markets have today towards her,” said Bernardo Keiserman, an economist at investment bank Bradesco BBI.

“We believe the government is committed to an adjustment, but delivering one sizable enough is not going to be an easy feat. The economy is weaker and likely weakening further,” said Mr. Keiserman.

Recently, the central bank cut its GDP growth forecast for this year to 1.5% from the previous 2.4% and lowered its estimate for 2025 to 1.2%.

Nearshoring, the trend of companies moving production closer to their main market, has helped Mexico attract investment, but Sheinbaum will face a challenge to increase foreign investment while implementing the judicial reform.

The judicial reform, under which judges will be elected by popular vote, has scared investors and drawn criticism from the U.S. ambassador to Mexico, who said it threatened the rule of law.

“I’ll govern for everyone and be assured that I’ll put my knowledge, strength, my history, and my life itself at the service of the people and the country,” said Ms. Sheinbaum. — Reuters