US says Iran war has cost $37.5bn as Hegseth seeks urgent funding

US says Iran war has cost $37.5bn as Hegseth seeks urgent funding

US Defence Secretary Pete Hegseth told senators that the war against Iran has cost about $37.5bn so far, as he pressed Congress for an urgent funding increase in Washington. He said the figure was roughly $8bn higher than the administration's previous public estimate in May and included anticipated costs through 30 September. The hearing took place before the Senate Appropriations Committee and was interrupted several times by anti-war protesters.

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Hegseth said he was seeking $87bn in congressional funding for the Defence Department, with $67bn earmarked for operations in the Middle East. He warned that military training would have to be curtailed if lawmakers did not approve the money, and said the armed forces faced shortfalls that could affect pay, equipment replenishment and munitions. He also said three US soldiers had been killed in the Middle East, underscoring the human cost of the renewed fighting.

The testimony came as the US launched a 10th consecutive day of strikes and Iran retaliated with attacks of its own against US forces and allies in the region. The hearing therefore linked battlefield operations directly to the budget process, with lawmakers weighing the cost of the campaign against the scale of the funding request. Senate Appropriations Committee chair Susan Collins questioned Hegseth on the consequences if the money was not approved, while the most senior Democrat on the panel, Patty Murray, warned that the war was spiralling out of control.

The financial request matters because it comes at a time when the administration is asking Congress to sustain a much larger military commitment in the Middle East. The White House has already sought $1.5tn for the Pentagon over the next fiscal year, a level that would raise US military spending to a modern-era high. The latest estimate also shows how quickly the cost of the conflict has risen since the previous figure in May, adding pressure on lawmakers to scrutinise both the war's duration and its wider budget impact.

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The conflict has also widened beyond the main US-Iran exchange, with the supporting material saying strikes in the latest round set desalination and power plants ablaze in Kuwait, while other sites were hit in Bahrain and Jordan. It also says the Houthis in Yemen, described as close allies of Iran, declared a maritime blockade against Saudi Arabia. Those developments point to the regional reach of the fighting and the risk of further disruption to energy and shipping routes.

What remains unclear is how long the campaign will continue, whether the cost will rise again, and how Congress will respond to the funding request. It is also not clear whether the administration's public claims about a possible deal will align with the military and budget plans now before lawmakers. The next developments to watch are further Senate scrutiny, any revised cost estimate and whether the funding package advances without major changes.


Earlier reporting on this story — 21 Jul 2026 · 22:59

US Defence Secretary Pete Hegseth has told senators that the war against Iran has cost $37.5 billion so far, as he appeared before the Senate Appropriations Committee in Washington. He said the estimate also includes anticipated costs through 30 September, and that it is about $8 billion higher than the administration's previous public figure in May. Hegseth was questioned alongside the chairman of the Joint Chiefs of Staff, General Dan Caine, during a hearing focused on the defence budget and the conflict's financial burden.

The hearing came as fighting between the United States and Iran continued, after a memorandum of understanding that had halted attacks since 17 June collapsed last week. The supporting material says the latest round of strikes followed 10 consecutive nights of US attacks, with President Donald Trump warning that Iran would "pay" after two more US soldiers were killed over the weekend. It also says the strikes have targeted sites linked to Iran's influence over the Strait of Hormuz, a key point of leverage in the conflict.

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The material presented to lawmakers says the war has already strained US weapons stockpiles and that the administration is seeking a $1.5 trillion defence budget, including nearly $70 billion for the Iran war. The figure is lower than some outside estimates that include wider economic effects, such as higher energy prices for US consumers. The hearing therefore linked battlefield operations to the wider budget process, with lawmakers examining both the cost of the campaign and the scale of the funding request attached to it.

The conflict has also widened beyond the main US-Iran exchange. The supporting rows say strikes in the latest round set desalination and power plants ablaze in Kuwait, while other sites were hit in Bahrain and Jordan. They also say the Houthis in Yemen, described as close allies of Iran, declared a maritime blockade against Saudi Arabia.

Those developments underline the regional reach of the fighting and the risk of further disruption to energy and shipping routes. The latest testimony matters because it gives the clearest official US cost estimate yet for a war that is still active and politically contested. It also comes as Congress is being asked to scrutinise a conflict that has resumed only recently, while the administration continues to defend both the military operation and the budget consequences of sustaining it.

The hearing adds pressure on the White House to explain how long the campaign will continue and how much more it may cost. What remains unclear is whether the fighting will intensify further, whether the projected costs will rise again, and how the administration's public claims about a possible deal will align with the military and budget plans now before lawmakers. The next developments to watch are further Senate scrutiny, any revised cost estimate, and whether the defence budget request advances without major changes.

The situation remains fluid, with strikes continuing and regional spillover still possible.


Earlier reporting on this story — 21 Jul 2026 · 22:00

US Defence Secretary Pete Hegseth has told senators that the war against Iran has cost $37.5 billion so far, as he faced questioning in a Senate Appropriations Committee hearing in Washington. He said the estimate also includes anticipated costs through 30 September. The hearing marked the first time he has publicly faced questions from lawmakers since US military operations against Iran restarted earlier this month.

Hegseth appeared alongside the chairman of the Joint Chiefs of Staff, General Dan Caine, during a session that is part of the US budget process. Senators pressed him on the cost of the conflict, the wider funding request tied to military spending, and a policy under which US troops will be offered testosterone replacement therapy. The figure he gave was nearly $8 billion higher than the last public estimate, according to the material presented at the hearing.

The exchange came as Republicans push a $95 billion budget package that would fund the military and also include aid for farmers and voting law changes. The White House has urged support for the budget resolution without modification and immediately. The package is being advanced through the reconciliation process, which would allow the majority to approve it without Democratic votes.

The hearing also highlighted growing political concern over the direction and cost of the conflict. Senator Patty Murray, the top Democrat on the panel, said the war was spiralling out of control again and warned it could become another forever war. She also pointed to President Donald Trump's repeated claims that a deal was near and that the war would soon be over, contrasting that with the new funding request.

The cost figure matters because war funding makes up the bulk of the Republicans' new budget proposal. The package is one of the last major priorities the party hopes to move before lawmakers recess to campaign for the midterm elections that will determine control of Congress. That gives the hearing significance beyond the immediate military campaign, linking battlefield spending to the wider fight over federal priorities and political control.

The session also reflects the fact that Congress is now being asked to scrutinise a conflict that has resumed only recently. Hegseth's appearance, together with General Caine, suggests the administration is still seeking to defend both the military operation and the budgetary consequences of keeping it going. The inclusion of the testosterone replacement policy added another layer of scrutiny, showing that lawmakers are examining not only the war's cost but also the personnel policies attached to the defence agenda.

What remains unclear is how long the conflict will continue, whether the projected costs will rise further, and how much support the budget package will secure in Congress. It is also not clear how the administration's public claims about a near-term deal will align with the funding request now before lawmakers. The next developments to watch are further Senate scrutiny, any revised cost estimates, and whether the reconciliation package advances before the recess.

360LiveNews 360LiveNews | 21 Jul 2026 23:59 LONDON
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