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US war against Iran has cost $37.5 billion, says Defence Secy Pete Hegseth

22 Jul 2026
2 min

US War Against Iran: Financial and Strategic Insights

The ongoing conflict between the US and Iran has incurred significant financial costs for the US, estimated at approximately $37.5 billion as reported by Defence Secretary Pete Hegseth. This updated figure was presented during a Senate Appropriations Committee meeting, which also discussed President Donald Trump's request for an additional $67 billion in defense funding.

Financial Breakdown and Concerns

  • The initial cost estimate of the war stood at $29 billion, not accounting for base damages.
  • Hegseth's estimate includes military operations and anticipated costs up to September 30.
  • The funding request comprises: 
    • $21 billion for acquiring advanced missiles and munitions.
    • $2 billion for replacing lost or damaged equipment.
    • $11.6 billion for investments in drones, satellites, and other technologies.

Strategic Implications and Criticism

The war has intensified following the breakdown of a ceasefire, leading to increased scrutiny and criticism, particularly from Democrats. They have suggested that large funding requests imply a potential extension of the conflict.

Defence Secretary Hegseth dismissed these concerns, asserting the necessity of the budget for modernizing military capabilities. He faced criticism for earlier claims of military victory and rendering Iran's military "combat ineffective."

Geopolitical and Operational Challenges

  • Iran-backed Houthi militants in Yemen have threatened shipping routes in the Red Sea, complicating geopolitical dynamics.
  • General Dan Caine, Chairman of the Joint Chiefs, addressed questions about the limitations of air power against Iran.

The hearing concluded with a heated exchange between Hegseth and Senator Gary Peters, highlighting deep political divides over the war's management and funding.

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RELATED TERMS

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Combat ineffective

A military assessment indicating that an opposing force has been degraded to the point where it can no longer effectively engage in combat operations. This term is relevant in assessing the impact of military actions.

Chairman of the Joint Chiefs

The highest-ranking officer in the United States Armed Forces, who serves as the principal military advisor to the President. Their testimony, like that of General Dan Caine, offers strategic perspectives on military operations and capabilities.

Houthi militants

An armed political and revolutionary movement originating from Yemen. Their actions, such as threatening shipping routes, have significant geopolitical and economic ramifications, particularly in the Red Sea.

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