IRIA News

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The Pentagon said May 12, 2026, that the United States has spent an estimated $29 billion on the ongoing war against Iran, as senior defense officials appeared before Congress to defend the administration’s military spending plans and broader strategy in the Middle East.

The updated figure marks a sharp increase from the $25 billion estimate given just two weeks ago. Pentagon acting comptroller Jules Hurst III said the higher cost reflects updated calculations tied to equipment repair and replacement, as well as the growing operational expenses of maintaining US forces across the region.

Hurst noted that the estimate still does not include the cost of repairing damaged American military installations in the Middle East.

“We have a lot of unknowns there,” Hurst told lawmakers. “We don’t know what our future posture is going to be. We don’t know how we construct those bases, and we don’t know what part our allies or partners could pay into our MILCON costs.”

The hearings came as tensions between Washington and Tehran remain high despite a fragile ceasefire that has largely held for the past month.

On Monday, U.S. President Donald Trump dismissed Iran’s latest peace proposal as “garbage,” raising fears that fighting could resume.

Shortly afterward, the speaker of Iran’s parliament warned that Tehran was prepared to deliver a “lesson-teaching response” to any future attacks.

US-Iran Ceasefire Under Pressure

Although both sides officially agreed to halt large-scale military operations in April, limited clashes have continued around the Strait of Hormuz, one of the world’s most important shipping routes.

Iran has reportedly launched missiles, drones, and small boats toward U.S. naval vessels operating in the area. In response, American forces carried out strikes on Iranian military targets.

Secretary of War Pete Hegseth acknowledged that the situation remains unstable and said the Pentagon is preparing for multiple scenarios. “As you know, for the most part, a ceasefire means fire is ceasing,” Hegseth said during testimony before Congress. “We have a plan to escalate, if necessary. We have a plan to retrograde, if necessary.”

Hegseth also confirmed that Project Freedom, a temporary U.S. naval operation designed to escort commercial vessels through the Strait of Hormuz, has been paused for now. “It’s an option we could always recommence, should the commander in chief want the U.S. to,” he said.

The conflict has significantly increased concerns about global energy security and shipping stability, especially after disruptions in the Strait of Hormuz pushed fuel prices higher in international markets.

Questions Over the Real Cost of War

Several analysts and lawmakers have questioned whether the Pentagon’s official estimate fully reflects the war’s broader economic impact.

Some economists argue that rising fuel prices, supply chain disruptions, and inflation linked to instability in the Gulf could ultimately push the total economic burden far beyond the Pentagon’s direct military spending figures.

U.S. Representative Ro Khanna previously estimated that the conflict could cost the American economy roughly $631 billion when indirect effects are included. Harvard economist Linda Bilmes warned that the overall long-term cost could eventually approach $1 trillion.

Economic pressure is becoming an increasingly sensitive political issue in the United States ahead of the midterm elections later this year.

On Tuesday, the U.S. Labor Department reported that consumer prices rose 3.8 percent compared to April 2025, marking the highest annual inflation increase since 2023. Gasoline prices alone rose 5.4 percent in April. The growing economic pressure has fueled criticism from both political parties over the financial sustainability of the conflict.

Pentagon Rejects Munitions Shortage Claims

During the hearings, Hegseth and Chairman of the Joint Chiefs of Staff Gen. Dan Caine pushed back against claims that the war has seriously weakened America’s weapons stockpiles.

“I take issue with the characterization that munitions are depleted in a public forum; that’s not true,” Hegseth said. “Ultimately, we have all the munitions needed to execute what we need to execute.”

Caine echoed the same position, saying the U.S. military currently has enough weapons to meet operational requirements. “We have sufficient munitions for what we’re tasked to do right now,” he said. “We’re always going to want more munitions.”

However, outside assessments have raised concerns about long-term readiness. A recent study by the Center for Strategic and International Studies said the conflict had consumed large portions of several key U.S. missile stockpiles, including Patriot interceptors, THAAD systems, and Precision Strike Missiles.

The report warned that while the U.S. can sustain current operations, future conflicts could place significant strain on military inventories.

China as Top Priority

Despite the ongoing conflict with Iran, Pentagon officials stressed that countering China remains America’s main strategic focus.

Speaking during discussions surrounding the Pentagon’s proposed $1.5 trillion budget request, Gen. Caine said the United States continues to prioritize deterrence in the Indo-Pacific region.

He said the Pentagon aims to maintain “a range and mix of capabilities” that create “outsized dilemmas” for Chinese President Xi Jinping and help preserve long-term deterrence.

The issue is expected to remain central during President Trump’s visit to China this week, even as Washington continues to manage tensions in the Middle East.

For now, the future of the ceasefire with Iran remains uncertain. While both Washington and Tehran continue to avoid full-scale escalation, officials on both sides are openly preparing for the possibility that the fighting could resume at any moment.