Hegseth estimates U.S. war in Iran cost $37.5 billion

Defense Secretary Pete Hegseth testified before a Senate panel alongside General Caine, providing the administration's first official estimate that the U.S. war with Iran has cost $37.5 billion since it began in late February. Hegseth also warned of the 'greatest threat' to the United States and sought a $1.5 trillion defense budget to address ongoing challenges. The testimony comes amid escalating military operations and growing scrutiny over the financial and strategic toll of the conflict. The $37.5 billion figure covers the initial months of combat, including munitions, logistics, and troop deployments. Hegseth's remarks underscore the administration's commitment to a prolonged military posture in the region, despite rising costs and domestic debate over the war's scope.

Global Impact

Economically, the war's cost adds to U.S. fiscal strain, potentially accelerating deficit growth and influencing global interest rates. Politically, the testimony highlights domestic divisions over the conflict, with implications for upcoming elections and U.S. foreign policy credibility.