The Pentagon has announced an updated price tag for the ongoing US-Israel war with Iran, now estimating the conflict has cost the United States $29 billion. This figure was revealed during a Senate committee hearing on Tuesday, where Pentagon chief Pete Hegseth and department comptroller Jules Hurst addressed members of Congress.
The estimated cost of the Iran war to date was now closer to $29 billion, the Pentagon’s acting comptroller told lawmakers Tuesday after giving a $25 billion price tag at a hearing on April 29 https://t.co/oKPG5aLQqG pic.twitter.com/AYNS4CE3da
— Bloomberg (@business) May 12, 2026
The new estimate marks an increase from the $25 billion reported in late April, representing the Trump administration’s first official acknowledgment of the war’s financial burden. However, several experts remain skeptical, suggesting the true cost to US taxpayers may be significantly higher.
While fighting has largely remained paused since April 8, with only occasional flare-ups, Hurst attributed the cost increase to “updated repair and replacement of equipment… and also just general operational costs.” The administration has yet to provide a comprehensive account of damage sustained at US military installations in the Middle East or the impact on the military’s munitions stockpile.
Addressing concerns about the US’s ability to replenish its weapons supply without compromising its global position, Hegseth assured the House Appropriations subcommittee that the Pentagon is “well aware of all those dynamics.” He stated, “The munitions issue has been foolishly and unhelpfully overstated. We know exactly what we have; we have plenty of what we need.”
Hegseth offered little insight into long-term plans for the war, following President Trump’s rejection of a recent ceasefire proposal from Iran. Trump described the pause in fighting as being “on life support” and “unbelievably weak.” Hegseth indicated that the Pentagon has plans for both escalation and de-escalation, stating, “We have a plan to escalate if necessary. We have a plan to retrograde if necessary. We have a plan to shift assets.”
The Trump administration’s willingness to resume fighting remains uncertain amid the ongoing tensions in the Strait of Hormuz. The war’s economic impact and unpopularity in the US pose a threat to Republicans in the upcoming midterm elections in November.
The US Labor Department recently reported a 3.8 percent increase in the consumer price index from April 2025, the highest annual increase since 2023, further highlighting the economic challenges facing the nation.
Chairman of the Joint Chiefs of Staff Dan Caine emphasized that responding to China’s growing influence would be a top priority during the upcoming trip. He stated that the Pentagon seeks “a range and mix of capabilities that create outsized dilemmas for [Chinese President] Xi Jinping and others that are out there, to ensure that we maintain and sustain deterrence.”
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