The U.S. has restarted full-scale war with Iran over who controls the Strait of Hormuz, a shipping lane that carries much of the world's oil — bad news for the global economy, oil prices, and Americans already facing high living costs.

• Peace talks have collapsed and Trump says the war is back on, sending a letter to Congress opening a new 60-day window for strikes.
• Fighting reignited after Iran fired on a container ship and declared the strait closed; the U.S. hit 140 Iranian targets, far more than before.
• Trump wants to run the strait as its "guardian" and charge a 20% fee on cargo, plus blockade Iran's ports — which Iran and even Secretary of State Rubio have called illegal under international law.
• Iran retaliated by striking U.S. bases in Gulf states and warned that the war could spread across the whole region.
• Oil prices jumped over 3%, and Trump has said he does not care if gas prices rise each time the U.S. hits Iran.

Outlook: With diplomacy dead, expect a bigger battle over the strait, higher oil and gas prices, and renewed inflation as the conflict widens.