Bad news for the world economy: the Iran war is escalating again, oil is climbing, and the emergency reserves that kept prices in check are almost empty.

• Trump is reportedly looking at ground troops in Iran, seizing Kharg Island in the Strait of Hormuz, and hitting energy sites — even as he claims Iran wants a deal.
• Oil has jumped back to $80–$85 a barrel, the highest since the last ceasefire, because the Strait of Hormuz is shut again.
• The scary part: countries have already burned through most of their emergency oil stockpiles, so there's little cushion left if the war drags on another month or two.
• Asian buyers who stayed calm for months are back in panic mode, warning they could run dry in about 40 days.
• The Trump team is split — Vance pushes negotiation while Trump talks up more bombing, and Iran vows to destroy any infrastructure in the region if attacks continue.

Outlook: With reserves nearly gone and neither side willing to back down, expect higher oil prices and a real risk of supply shortages if fighting keeps up.