Iran War Costs Surge as US Congress Debates Trillion-Dollar Military Spending
The 10-week conflict in West Asia involving the United States and Iran continued to send shockwaves through the global economy, with energy prices climbing by more than 3 per cent on Tuesday.
The spike came as political tensions intensified in Washington, where lawmakers sharply debated the financial burden of the war and the future of America’s military spending.
US Defence Secretary Pete Hegseth appeared before Congress on Tuesday to defend President Donald Trump’s proposed $1.5 trillion defence budget for 2027.
During the hearing, Hegseth insisted that the ceasefire agreement between the US and Iran was still holding, despite recent direct military exchanges between the two countries.
Earlier, during an April 29 hearing before the House Armed Services Committee, Pentagon officials had estimated that the Iran war had cost the United States around $25 billion, largely due to ammunition use and maintenance of military equipment.
However, the Pentagon has now revised that figure upward. Jules Hurst, the Defence Department’s top budget official and comptroller, informed lawmakers on Tuesday that the estimated cost of the conflict has risen to nearly $29 billion.
He explained that the additional expenses include operational costs, equipment repairs, and replacement of damaged military assets. Hurst also noted that Pentagon officials are continuing to reassess the total financial impact of the war.
Despite the revised estimate, several Democratic lawmakers and independent analysts believe the real cost could be far higher than what the Trump administration has disclosed publicly.
Linda Bilmes, a professor at the Harvard Kennedy School, warned that the war is currently costing the United States nearly $2 billion every day in immediate military expenses alone.
She described these upfront costs as only “the tip of the iceberg,” suggesting that long-term financial consequences could be much larger.
Some Democratic leaders have claimed that Washington’s total spending related to the Iran conflict may eventually range between $630 billion and $1 trillion, according to reports by Al Jazeera.
Responding to criticism from opposition lawmakers during an earlier congressional session, Hegseth accused Democrats — and some Republicans — of undermining national unity.
He said America’s greatest challenge was not foreign enemies, but what he described as the “reckless” and “defeatist” rhetoric coming from political opponents in Congress.
Meanwhile, the human cost of the conflict continues to rise. Iran’s health ministry says that at least 3,375 people have been killed in US-Israeli strikes across the country.
On the American side, the US military has confirmed the deaths of 14 service members, while nearly 200 others have been injured during the ongoing hostilities.
