The push to end the US-Iran war is falling apart, which is bad for oil markets, US finances, and anyone hoping for a quick exit.

• Iran's hardliners appear to be winning, and they are piling new conditions onto a near-final deal instead of softening.
• New demands include full payment for war damage, no threats or insults from Trump, and an end to fighting across the region — asks the US and Israel will not accept.
• The Strait of Hormuz stays partly closed, and once markets realize oil, gas, and fertilizer will be stuck for months, prices and inflation could jump.
• Netanyahu openly rejected Trump's 15-point Gaza plan, said he will keep about 70% of Gaza, and will not disarm Hamas or withdraw — a public snub to Washington.
• The US is running low on both defensive and offensive missiles, raising the risk that an American ship gets hit and traps the country deeper in the conflict.

Outlook: With hardliners rising in Iran and Israel refusing any peace deal, the war looks set to drag on and push oil and inflation higher.