US attacks on Iran are ramping up, shipping through the Strait of Hormuz has nearly stopped, and the fallout is dragging on the global economy — bad news for oil markets, the world economy, and regular people on both sides.

• The US launched fresh daytime strikes on Iran, the first since the ceasefire broke, and Trump promises to hit power plants and bridges next week.
• Ship traffic through the Strait of Hormuz has collapsed from about 130 a day to under 10, and a tanker broke apart and sank near the Iranian coast.
• Oil is rising and the US is draining its emergency oil reserves toward the legal minimum, leaving little cushion in a month or two.
• The economy is splitting — big banks post record trading profits while long-term unemployment climbs and home buyers back off as mortgage rates hit a yearly high.
• China's growth is one of the weakest in decades, and slowdowns in the two biggest economies point to trouble for everyone.

Outlook: Strikes are set to widen to energy targets and infrastructure, so expect higher oil prices and more economic strain in the weeks ahead.