Talks with Iran have collapsed and borrowing costs are spiking — bad news for consumers, borrowers, and anyone hoping for cheaper oil.

• Trump turned down Iran's offer to reopen the Strait of Hormuz and expects bombing to resume after the midterms.
• The 10-year government bond yield hit its highest since 2007, pushing mortgage and loan costs up toward levels not seen in decades.
• Iran's president says there is no point talking, pointing to torn-up deals and strikes during past negotiations.
• Consumer sentiment just hit its second-lowest reading on record, worse than during the 2008 crash or the pandemic.
• Trump's approval is down to 37%, the weakest of any president going into midterms in decades of polling.

Outlook: Oil prices and the bond market are the things to watch — if rates keep climbing while gas and grocery costs rise, layoffs and a broader slowdown are the likely next step.