The oil blockade is dragging on and now allies are backing away from America, which is bad news for savers, borrowers, and industry on both sides of the Atlantic.

• Trump turned down Iran's offer of a short ceasefire in exchange for reopening the Strait of Hormuz, and hinted at more bombing after the midterms.
• Diesel has hit record highs and global oil stockpiles are draining fast, pushing inflation and government bond yields toward 1970s levels.
• Debt makes this far more dangerous than the 1970s — US debt is now bigger than the whole economy and the deficit keeps growing.
• Germany is cutting investment into the US sharply, with lawmakers now pushing to bring their gold home from New York.
• Stocks keep climbing anyway because foreign money is piling into AI and tech, a bet that snaps if the data center spending slows.

Outlook: Expect higher energy costs, higher borrowing costs, and more allies quietly shifting money out of American assets into 2027.