Wall Street expects the US to borrow heavily with short-term debt as war spending and rising interest rates push the deficit higher, bad news for taxpayers and bond markets.

• Wall Street expects the Treasury to issue about $1 trillion in short-term debt as borrowing costs climb, driven by Iran war spending and new federal projects.
• The White House admits the deficit is a serious problem but says fixing it needs a long-term plan, not deep cuts overnight.
• Trump says he is in "deciding mode" on Iran, with options ranging from a deal to economic strangulation to wiping the country out.
• Signs point to an escalation soon: the US is reviewing strikes on the Houthis, the State Department issued a Middle East security alert, and Iran is warning its own people.
• At the same time, the administration privately told Qatar it wants a deal, while Iran demands $300 billion in compensation, all sanctions lifted, and US troops out of the region.
• Trump and his sons are heavily invested in AI, and his planned Washington arch would now double as a drone and sniper base, drawing criticism from lawmakers and veterans.
• The Pentagon dismissed a Washington Post report that US combat deaths in Iran are higher than officially reported, calling it fake.

Outlook: Government borrowing and interest costs will keep climbing, and the Iran conflict looks more likely to escalate than to end soon.