America is waking up to some major news. Peace talks between the US and Iran have failed and both sides have returned home. As a result, Iran is refusing to reopen the Strait of Hormuz without a permanent peace agreement and the US has called it "bad news" for Iran. Now, we await President Trump's response. If the path forward is continued war, escalation, and a prolonged closure of the Strait of Hormuz, then the Iran War has just entered a new era. US CPI inflation just jumped from 2.4% to 3.3% and further escalation of the Iran War would lead to 4.0%+ inflation, according to our models. Meanwhile, Iran's Speaker of the Parliament just announced that the US "failed to gain Iran's trust" during negotiations. There are currently no plans for additional talks, according to Iranian media. So, will Trump choose to push harder for diplomacy or double down on military action? Today, we find out.(The Kobeissi Letter)