US defence chief Hegseth puts Iran war cost at $37.5bn so far

During testimony before the Senate appropriations committee, US Defense Secretary Pete Hegseth provided an updated cost assessment for ongoing military operations against Iran. The $37.5 billion figure represents a substantial increase from the Trump administration's previous estimate released in May, which stood at $29 billion. Hegseth noted that the calculation encompasses operations and maintenance expenses extending through the end of September, though he declined to elaborate on specific cost components.

The Pentagon's official figure contrasts sharply with broader economic analyses. Moody's Analytics has calculated the domestic cost to American consumers at approximately $150 billion when accounting for secondary effects such as elevated energy prices resulting from regional instability. This disparity highlights the distinction between direct military expenditures and wider economic consequences.

Hegseth's testimony occurred as part of a broader defense budget request totaling $1.5 trillion, with approximately $70 billion allocated specifically for Iran-related operations. He emphasized the strain on US weapons stockpiles, citing the need for accelerated production of munitions including solid rocket motors, JDAMs, hypersonics, and counter-drone systems. The Pentagon chief warned that training programs would face curtailment without adequate budget allocation.

The testimony came amid escalating military tensions. A memorandum of understanding that had halted attacks since mid-June had recently collapsed, prompting renewed strikes. Iran has pledged continued attacks on US regional assets, while allied Houthi forces in Yemen have declared a maritime blockade against Saudi Arabia. Recent strikes have targeted infrastructure in Kuwait, Bahrain, and Jordan.