After midterm losses, Trump weighs next phase of Iran war
Why it matters: Oil is moving again through the Strait of Hormuz, but fighting has spread to the Red Sea and kept pressure on global prices.
After Republicans' midterm defeat, President Donald Trump is deciding whether to escalate or hold the current U.S. posture in the eight-month war with Iran. Trump has threatened to resume broader bombardment if Tehran does not accept terms he wants, even as the conflict has already inflicted tens of billions of dollars in regional damage and pushed up fuel and other costs worldwide. Oil shipments are flowing again through the Strait of Hormuz under U.S. Navy escorts, but the war has widened to the Red Sea, where Iran-backed Houthi rebels are fighting a Saudi-led coalition and worsening Yemen's humanitarian crisis.