The Iran conflict is spreading beyond the Gulf, and it is bad news for oil buyers, European economies, and anyone hoping for a quick deal.

• Iran is reportedly looking at targets in Europe, including undersea internet cables in the Strait of Hormuz, if the US escalates.
• The UAE says Iran fired missiles at it and has cut off all trade with Iran; Iran denies the attack.
• Trump says there are no talks with Iran and wants to squeeze it with money pressure instead of bombs, including penalties on other countries that trade with it.
• Oil is sitting above $90 a barrel because ships are still being hit in the strait, keeping gas prices high.
• Europeans are saving more than before the pandemic because they are scared about the future, and UK inflation jumped again on higher energy costs.

Outlook: Both sides are waiting for the other to blink, so expect more pressure on countries to pick a side and oil to stay high or push toward $100.