Axios

The Defense Department estimates Iran has been denied nearly $5 billion in oil revenue because of the U.S. blockade in the Gulf of Oman, causing unprecedented pressure on Tehran's government.

Why it matters: The blockade is President Trump's most significant leverage tool to negotiate ending the war with Iran, and the Pentagon wants to emphasize its impact as peace talks stop and start.

Iran delivered its response to the latest U.S. amendments to a draft plan to end the war, but President Trump told reporters he was "not satisfied with what they are offering."

The big picture: The Iranian response signals diplomacy isn't entirely frozen. It comes as Trump maintains a U.S. naval blockade and considers new military action against Iran.

The uncomfortable new normal for the U.S. economy: spending growth concentrated at the top of the income ladder, a split largely explained by wealth gains from financial assets.

Why it matters: The K-shaped economy is real, though it is not particularly new. That's the conclusion of research out Friday morning from the Federal Reserve Bank of New York.