US DEFENCE CHIEF PUTS IRAN WAR COST AT $37.5BN

United States Secretary of Defence Pete Hegseth stated that the US-Israel war on Iran has cost $37.5bn to date, during a Senate appropriations committee hearing on Tuesday. Hegseth and Chairman of the Joint Chiefs of Staff Dan Caine faced questioning about a $1.5 trillion defence budget request, which includes nearly $70bn for the Iran conflict. The figure represents an increase of approximately $8bn from the administration's previous estimate of $29bn released in May. Hegseth noted that the price includes operations and maintenance costs extending through the end of September, though he did not provide further detail on the breakdown.

The stated cost significantly undercuts other estimates that account for wider economic consequences. Analytics firm Moody's has estimated the domestic cost to American consumers at up to $150bn when factoring in effects such as higher energy prices. Hegseth told Democratic Senator Dick Durbin that $37.5bn was "the estimate we have as of today". The hearing occurred as fighting between US and Iranian forces continued, following the collapse last week of a memorandum of understanding that had halted attacks since 17 June.

Hegseth warned Senator Susan Collins that military training would require curtailment without urgent funding increases, with Collins noting that some military branches faced near-term solvency pressures. Trump has threatened further escalation, including strikes on Iranian energy infrastructure and underground nuclear-linked facilities. Iran has pledged to continue striking US assets in the region.