My attack on Russia started well, and Hungary decided to join Germany. Unfortunately, Rumania continued to stay out of the war. The British and Russians attacked Persia to free up a lend lease route to Russia, however this attack on a neutral country caused Spain to move to Pro-Axis. This will give me additional supplies from Spanish factories. The downside is that the US is very near to entering the war. Japan had been concentrating on attacks on China and was not planning to attack the US for several more turns. The increase in US War Readiness will probably lead Japan to attack the US sooner than it wanted to.
A note about fog of war. I usually test without fog of war so I can see what the AI is doing. This allows me to give comments to Gary when I see the AI doing something wrong. If I had fog of war on, I would not necessarily know how close the US was to declaring war. Depending on how effective my intelligence assets were (something the players can influence by purchasing additional spies or security forces) I might know if the US was on the verge of war or I might only have a vague idea of what their situation was.
In the Med, I finally forced the British fleet to retreat, but large British land forces in Egypt will prevent me from making any move to the Middle East.

All understanding comes after the fact.
-- Soren Kierkegaard