The war and the US economy are both getting worse at once, and that's bad news for workers, allies, and anyone hoping for cheaper gas.

• The Pentagon quietly raised the official death toll from the Iran war to 21, after top officials had called earlier reports of a higher count a lie.
• The conflict is spreading: Houthi missiles hit Saudi Arabia's Riyadh airport, forcing part of it to close, and Trump says he may join Saudi strikes.
• US negotiators are dangling big money at Russia — unfreezing seized Russian assets and reviving a deal to sell pieces of Lukoil to Middle Eastern investors — in exchange for a limited ceasefire meant to ease gas prices.
• Defense money keeps flowing, with Lockheed Martin rolling out a new interceptor missile, while the Army's own tests show the US is years behind on AI warfare.
• Workers are scared: people are putting in unpaid extra hours to keep jobs, loan defaults are at levels last seen in the 2008 recession, and even experienced job seekers get almost no interviews after sudden company bankruptcies.

Outlook: Expect the war costs to keep feeding through into gas, borrowing costs, and a weaker job market, with no sign either side of the problem is easing soon.