The war between the US and Iran is getting worse fast, and it's bad news for drivers, oil markets, and anyone hoping gas prices come down.

• Iran fired missiles near two US Navy ships and captured a US unmanned submarine in the Strait of Hormuz; the US answered by sinking three Iranian oil tankers.
• Iran is now hitting US bases in the region, including its largest missile barrage in Jordan, and has threatened Gulf oil and gas fields directly.
• In Yemen, the Houthis took the port of Mocha and an island near the Bab al-Mandab strait, giving them a grip on a second major shipping route.
• The Houthis also struck Saudi Arabia's east-west pipeline, the workaround built to bypass Hormuz, sending Brent crude sharply higher.
• With both the Red Sea and Hormuz choked off, oil, fertilizer, and other goods are getting stuck, and higher oil feeds into plastics and prices across the board.

Outlook: Neither side is backing off before the US midterms, so expect more strikes on energy infrastructure and higher gas prices, with a hit on a US warship or Gulf oil field the next big risk.