The Pentagon's latest estimate puts the cost of the U.S. war against Iran at 37.5 billion U.S. dollars so far, U.S. Defense Secretary Pete Hegseth said on Tuesday as President Donald Trump's administration seeks more funding for the conflict.
Supplemental funding for the war with Iran is "urgent, necessary," Hegseth testified during a Senate budget hearing.
"Without these funds, we face critical shortfalls," Hegseth asserted.
His remarks came as Republican lawmakers sought congressional approval for U.S. President Donald Trump's proposed 1.5-trillion-dollar defense budget.
In June, White House Office of Management and Budget Director Russell Vought told lawmakers that the war with Iran cost U.S. taxpayers around 30 billion dollars.
Hegseth was also pressed over reports that the Pentagon had delayed disclosing U.S. military injuries from recent fighting with Iran. Nearly 100 U.S. troops have been injured since July 7, according to the Pentagon.
US defense secretary says Iran war cost 37.5 billion USD, seeking more funding
US defense secretary says Iran war cost 37.5 billion USD, seeking more funding
The Japanese yen hit 163 against the U.S. dollar in New York on Tuesday, a level unseen since December 1986, as investors sought the greenback as a safe asset amid escalating tensions in the Middle East.
The yen's slide has driven up import costs from energy to food, hitting Japan's resource‑dependent economy and millions of households.
Analysts warn that renewed hostilities in the Middle East could disrupt vital energy shipping routes and send global oil prices surging. For Japan, which relies heavily on imported fossil fuels, higher crude costs would swell the trade deficit and prompt investors to sell yen for dollars in anticipation of a worsening current account balance. Meanwhile, domestic factors are adding to the yen's weakness. The wide interest rate gap between Japan and major Western economies remains a drag, while markets expect Prime Minister Sanae Takaichi's administration to press ahead with its "proactive fiscal policy," easing budget discipline. Traders see that stance as a signal for further yen depreciation.
At its lowest in nearly four decades, the yen is fueling expectations of fresh intervention by Japan's government and central bank.
Japanese yen falls to 39-year low amid Middle East tensions
