The Iran war is widening in ways that are bad for the US, Saudi Arabia, and oil prices, while Iran and the Houthis are gaining leverage.

• Iranian drones and a missile hit a US-contracted ship near the Strait of Hormuz, injuring people on board, some of them US personnel.
• Rep. Joe Kent warns that US ships in the region are sitting ducks and that a mass-casualty strike could force Trump to escalate an unpopular war before the midterms.
• Houthi attacks shut down Saudi Arabia's East-West pipeline, keeping 4% of the world's oil supply off the market and holding oil above $100 a barrel.
• The US reportedly cut a secret deal with the Houthis in Oman: they can keep blockading Saudi Arabia as long as they leave US ships alone, and the US won't help Saudi bomb them.
• Amazon Web Services says customer data in its Bahrain and UAE data centers, hit by Iranian drones earlier in the war, is gone for good — a first for a cloud provider.

Outlook: With the US stepping back from Saudi Arabia's defense and Iran far from beaten, Gulf states are being forced to plan for a region where Iran is a permanent power and oil stays expensive.