In a paper I recently wrote on Psalm 82′s form and function, I very briefly touched upon a distinction between a deity’s political kingship and their cosmic kingship. I haven’t seen this discussed much, but it seems to me an important distinction to make. Yhwh, for instance, is understood exclusively as the deity of Israel well into the exile (Ps 79:1, 6; Amos 3:2; etc.), but he is asserted to be the High God and king well before (Ps 18:13; 29:10). Even the name יהוה אלהים suggests his creation of the gods (according to some).
Many scholars equate kingship over the gods and heaven/earth with political universalization (see, for instance, Heiser, “The Divine Council in Late Canonical and Non-Canonical Second Temple Jewish Literature,” 77), but I think this is a mistake. When Baal and Marduk accede to their divine kingships in the Baal Epic and Enuma Elish, respectively, there is no indication they do not remain national deities. Kemosh remained the national deity of Moab, and Yhwh the deity of Israel, even in the Mesha inscription, where Yhwh’s temple vessels are dragged before Kemosh. I would point out, too, that in the ancient Near Eastern pantheons there was nothing problematic about multiple “kings.” Baal’s accession to his “eternal kingship” (KTU 220.127.116.11) did not undue El’s sovereignty.
For this reason I see nothing in the Hebrew Bible that undermines the conclusion that Yhwh was politically universalized during the Exile as a means of rationalizing Israel’s deportation and protecting Israel’s relationship with Yhwh and her national identity. Yhwh’s kingship over the gods in pre-exilic periods does not complicate that theory.