The US is bombing Iranian oil tankers to choke off Iran's oil money, pushing oil toward $100 a barrel — bad for drivers, and a fresh escalation with no clear exit.

• US Central Command is hitting Iranian tankers near Kharg Island and Jask, close to the Strait of Hormuz, targeting the oil sales that fund Iran's economy.
• Iran's Revolutionary Guard has promised to retaliate and claims it seized a US underwater drone; officials say ground troops are not part of the plan.
• Oil is already near $100, which feeds straight into gas and grocery prices for Americans already squeezed by high costs.
• Canada is hitting back with $20 billion in tariffs on steel, aluminum, appliances, and dairy, aimed at states with tight Senate races before the midterms.
• Britain, Canada, and France have sanctioned Israeli West Bank settlements, and Canada and the EU are building a closer alliance as allies drift away from Washington.

Outlook: Expect oil to stay high and the strikes to continue, with Iran retaliating rather than backing down and US allies deepening ties with each other instead.