Bad news for households and the economy: the Iran conflict is escalating again, gas and grocery prices are climbing, and the US looks to be losing the longer fight.

• Trump vowed to hit Iran's power plants next after strikes cut water to 20,000 people, and bragged about secretly seizing millions of barrels of Iranian oil — signs there's no real peace deal.
• Inflation hit its worst level in three years, with gas up sharply since the war began and food and utility bills rising; Trump said he "loves" the numbers.
• Oil is staying expensive worldwide, and the US is now exporting record amounts to Japan and China, which keeps fuel costs high at home too.
• Iran is using cheap drones to destroy costly US gear — reportedly $1.5 billion in damage at the Fifth Fleet's Bahrain base — wearing down American air defenses faster than they can be replaced.
• Russia is the quiet winner, since war and high oil prices fill its coffers.

Outlook: Expect the fighting to climb further with no deal in sight, keeping prices high and pointing toward a costly, drawn-out setback for the US.