The Iran conflict is spiraling into a wider mess for the US, Israel, and oil markets, with no end in sight and few good options left.

• Houthi forces struck a Saudi oil tanker in the Red Sea and threatened to choke off all routes carrying Saudi oil.
• Talk of a deal to reopen the Strait of Hormuz is really between Iran and Oman, not the US — a sign of how little leverage Washington now has.
• The US military has burned through most of its missile interceptors, and Gulf allies fear they can't fend off Iranian retaliation if Trump escalates.
• Violence in the West Bank is worsening, with even pro-Israel voices warning of a possible new Palestinian uprising Israel can't afford.
• Claims that the "K-shaped economy" is over ring hollow as stocks surge for the rich while gas tops $4 a gallon in swing states and squeezes workers.

Outlook: Expect continued tit-for-tat fighting and higher oil-price risk, with a real chance Trump escalates rather than admits a weak hand.