The US has restarted bombing Iran after a missile attack on its Middle East bases, and stocks sold off hard on fears of a wider war and rising inflation.

• The Dow fell 1,100 points and the Nasdaq dropped 4% — the worst day since April 2025 — as investors worry the Fed is behind on inflation.
• The Fed held rates steady, caught between a soft-but-stable job market and inflation driven by heavy AI spending, tariffs, and high energy costs.
• Iran is reportedly getting hundreds of Chinese rocket launchers routed through Pakistan, despite Xi's promise to Trump to stay out.
• A blockade and oil sanctions meant to "starve out" Iran could push oil toward $200 a barrel, and US oil reserves are already at a 40-year low.
• US borrowing costs hit a 19-year high, so the war gets more expensive to fund just as the military asks for huge emergency spending.

Outlook: More strikes are planned and a possible teardown of Iran's oil and gas facilities looms, pointing to higher energy prices and deeper escalation with no exit in sight.