The war between the United States, Israel, and Iran—now in its second week—has escalated from initial U.S.-Israeli strikes on Iranian nuclear and military sites into a wider regional conflict marked by retaliatory attacks, civilian casualties, and major economic disruption. Strikes on Iranian oil infrastructure reduced output and briefly pushed oil prices as high as $117 per barrel, raising inflation concerns and prompting President Donald Trump to consider measures to lower energy costs. Mojtaba Khamenei assumed leadership after the death of Iran’s supreme leader, while diplomatic tensions remain high as Iran rejects backchannel talks and Israel considers possible de-escalation options. The conflict has caused humanitarian crises, infrastructure damage, and U.S. troop deaths, while intelligence assessments warn regime change in Iran could fail and destabilize the region, even as the war fuels political and economic debates in the United States ahead of the 2026 midterm elections.