An oil supply crisis is spiraling as Houthi and Iran attacks threaten Middle East exports, sending inflation and bond yields sharply higher — bad news for markets, borrowers, and the US economy.

• Oil has jumped back above $100 a barrel after Houthis struck Saudi oil tankers in the Red Sea, raising fears the region's exports could be cut off.
• Iran is threatening to shut both the Strait of Hormuz and the Red Sea, which would choke off a huge chunk of the world's oil supply.
• Higher oil means higher inflation, and markets now expect the Fed to raise interest rates soon instead of cutting.
• Bond yields have spiked, mortgages and loans are getting more expensive, and US stocks lost over $1.3 trillion in value.
• The US can't fix this by tapping its emergency oil reserve — stockpiles are already at their lowest since 1983.

Outlook: Trump is reportedly close to a large-scale strike on Iran, and oil could climb toward $110–$120 with no sign either side backs down soon.