US-Israel War on Iran Officially Priced at $37.5 Billion by Defense Secretary Hegseth

United States Secretary of Defense Pete Hegseth has put the latest official price tag on the US-Israel war on Iran at $37.5bn.

Hegseth confirmed the figure during a hearing before the Senate appropriations committee on Tuesday, in which he and Chairman of the Joint Chiefs of Staff Dan Caine were questioned about their request for a $1.5 trillion US defence budget, including nearly $70bn for the war with Iran.

Still, the number is significantly lower than other estimates, especially those that include knock-on expenses for US consumers. For instance, Moody’s Analytics has estimated the domestic cost of the war to be up to $150bn, accounting for factors such as higher US energy prices.

“The estimate we have as of today is $37.5bn,” Hegseth said upon questioning from Democratic Senator Dick Durbin.

Hegseth added that the price includes some operations and maintenance costs extending through the end of September, but did not provide specifics.

The latest quote is about $8bn higher than the previous figure released by the administration of President Donald Trump of $29bn in May.

Hegseth appeared before the committee as fighting between the US and Iran continued to rage, after a memorandum of understanding (MoU) that had seen a halt in attacks since June 17 collapsed last week.

On Monday, ahead of the 10th consecutive night of US strikes, Trump said Iran would “pay” after two more US soldiers were killed over the weekend.

Over the last week, Trump has threatened to target energy plants and bridges in Iran; send ground forces to seize Iran’s Kharg Island; and bomb a deep-underground nuclear-linked site known as Pickaxe Mountain.

Attacks have so far targeted sites Iran uses to assert influence over the Strait of Hormuz, its key point of leverage in the conflict.

Iran, meanwhile, has pledged to continue to strike US assets in the region. The latest round of strikes saw desalination and power plants set ablaze in Kuwait, as well as other sites hit in Bahrain and Jordan. The Houthis in Yemen, close allies of Iran, have also declared a maritime blockade against Saudi Arabia.

During his opening statements, Hegseth referenced strains on the US weapons stockpile from the war, which the US and Israel launched on February 28.

He said funding was needed “to expand production lines and accelerate delivery of high-demand munitions. We’re talking about solid rocket motors, JDAMs [Joint Direct Attack Munition], hypersonics, and counter-drone capabilities”.

The Pentagon chief also pointed to a pending budget crunch amid the war, saying that “training in the future would have to be curtailed if we do not get our budget needs met and met urgently, and yes, some of that has to do with the current budget cycle and how things come together”.

Democratic Senator Patty Murray questioned the sprawling budget request, which also included funding requests for the National Guard deployment in Washington, DC, US operations against alleged drug smugglers in the Caribbean, and military patrols of the US border.

“So I’ll be blunt,” she said. “The truth is, your request does not make a lot of sense.”