Oil and diesel prices are spiking after Houthi forces took control of a key shipping chokepoint and a major Saudi pipeline went down — bad for drivers, the US economy, and Trump ahead of the midterms.

• Houthi fighters overran Saudi-backed forces in Yemen and now control the Bab al-Mandeb Strait, a narrow passage much of the region's shipping must pass through.
• Saudi Arabia's East-West pipeline was hit by Iran-aligned Iraqi militias, knocking out a chunk of world oil supply for weeks.
• Gas is over $4 a gallon nationally and diesel is above $6 — a record — with some California stations maxing out their price signs.
• The cushions that kept prices down are gone: China is buying oil again and the US emergency oil reserve has already been drained.
• Iran has restarted ballistic missile production in underground sites, and higher pump prices before November appear to be part of its strategy.

Outlook: Expect more pressure on oil and diesel into the midterms, with rising odds of a stock market drop and a broader downturn if prices keep climbing.