The Pentagon has confirmed that the cost of the war with Iran has now reached nearly $29 billion, a sharp rise from the $25 billion estimate given just two weeks earlier.

The figure has intensified scrutiny on President Donald Trump’s handling of the conflict, with lawmakers questioning both the financial burden and its impact on U.S. military readiness.

The updated figure was disclosed during a budget hearing on Capitol Hill, where Defence Secretary Pete Hegseth, Joint Chiefs Chairman General Dan Caine, and Pentagon finance chief Jules Hurst III testified on the administration’s record-breaking $1.5 trillion defence budget request for 2027.

Hurst explained that the new estimate reflects updated repair and replacement costs for equipment as well as broader operational expenses. He noted that the joint staff and comptroller teams are constantly revising figures, which led to the increase of approximately $4 billion since the last testimony on 29 April.

The Pentagon clarified that the $29 billion figure does not yet include the costs of repairing damaged U.S. military installations in the Middle East, which sustained significant damage from Iranian counterattacks.

This omission has prompted concerns among lawmakers that the true financial burden could be far higher. Democrats pressed the administration for greater transparency, with Representative Rosa DeLauro asking pointedly: “What have we accomplished and at what cost?” Fellow Democrat Betty McCollum accused the Pentagon of a “consistent lack of transparency” and demanded clarity on long-term strategy before Congress approves further funding.

Republican lawmakers also raised concerns, particularly about the depletion of U.S. weapons stockpiles. Senator Mitch McConnell emphasised NATO’s importance and criticised the administration’s strained relations with allies.

Hegseth, however, rejected claims that munitions were depleted, insisting that the U.S. military retained sufficient missile defence systems and was ramping up production to meet future needs. Pentagon officials revealed that roughly $24 billion of the total cost is tied to replacing munitions and repairing equipment, with the remainder covering operational deployments.

The hearing took place against the backdrop of a fragile ceasefire between the U.S. and Iran, which President Trump described as being on “life support” after rejecting Tehran’s latest peace proposal. 

Despite the declared truce, limited exchanges of fire have continued near the Strait of Hormuz, with Iranian drones and missiles targeting U.S. warships and prompting retaliatory strikes. Defence Secretary Hegseth remarked that the situation remains fluid, stating: “For the most part, ceasefire means fire is ceasing. We have a plan to escalate, if necessary, and a plan to retrograde, if necessary.”

Beyond the immediate military costs, the war has had wider economic repercussions. U.S. consumer inflation rose to 3.8% year-on-year in April, driven largely by soaring energy prices linked to the conflict.

This has added to public discontent, with polls showing declining approval for Trump’s handling of the economy. Analysts warn that the broader economic impact, including inflation, job losses, and slower GDP growth, could push the true cost of the war into the hundreds of billions or even trillions of dollars.

The Pentagon’s testimony underscores the mounting financial and strategic challenges of the Iran war. While officials insist that the costs are justified to prevent Tehran from acquiring nuclear weapons, critics argue that the administration has failed to provide a clear endgame. The debate over the war’s price tag is likely to intensify as Congress considers supplemental funding requests beyond the main defence budget.

AFP