Talks to end the Persian Gulf conflict have failed, pushing oil to a three-week high and threatening higher gas prices for drivers.

• The 60-day window for a settlement closed with no deal and no sign one is coming.
• Iran added new demands the U.S. had already publicly rejected.
• A cargo ship was hit by a projectile in the Strait of Hormuz, and Iran warned other ships crossing will be attacked too.
• Trump threatened to bomb Oman, a U.S. ally, for going soft on Iranian demands.
• Iran-backed Houthi rebels appear to have taken the Yemeni port of Mocha near the Red Sea, widening the war.

Outlook: Oil is climbing and stocks are falling as the fighting spreads, so gas prices are likely to head back up.