The US-Iran fight is escalating fast, and that is bad news for oil buyers, bond markets, and anyone hoping the Fed cuts rates.

• Iran fired 13 ballistic missiles at a US camp in Jordan; Jordan says most were shot down and three hit empty ground.
• Washington says no injuries and no major damage, while Iran claims it killed many American troops — both sides have reason to shade the truth.
• Iran also launched drone attacks on US-linked sites in Bahrain and Kuwait, spreading the fight across the Gulf.
• Russia is reportedly helping Iran build a fast, low-flying cruise missile that would be much harder to shoot down than what it uses now.
• Oil pushed above $95 and government bond yields climbed toward 4.8%, keeping the odds of a Fed rate hike this month around two-thirds.

Outlook: Trump has promised to hit back at every Iranian strike, so the tit-for-tat is likely to continue and keep pushing oil and interest rates higher.