Trump is threatening to seize Iran's main oil terminal and reportedly weighed using a small nuclear weapon, which is dangerous news for global markets and risks a wider war.

• Trump wants US troops to take Kharg Island, Iran's key oil export point deep in the Strait of Hormuz, and run its oil like the US is doing with Venezuela.
• A landing would be extremely risky — the strait is locked down, US ships can barely pass, and Iran could let troops land then swarm them with drones and missiles.
• A new report says Trump considered a low-yield nuke to destroy Iran's underground missile factories before being talked out of it; the fear is this would invite Russia and China to use small nukes too.
• The real pressure is oil — US oil bosses warned the White House that the blocked Strait of Hormuz could run supplies dry by early July, threatening the economy.
• Israel's Netanyahu is seen as wanting the war to continue to delay his own legal and political reckoning at home.

Outlook: With oil supplies tightening and Trump flailing for a quick fix, the risk of a reckless escalation against Iran is rising in the coming weeks.