WASHINGTON: United States Secretary of Defense Pete Hegseth has revealed that the latest estimated cost of the ongoing US-Israel military campaign against Iran has reached $37.5 billion, providing the first updated official figure on the financial impact of the conflict.
Hegseth disclosed the estimate during a hearing before the US Senate Appropriations Committee on Tuesday, where he and Chairman of the Joint Chiefs of Staff Gen. Dan Caine defended the administration’s proposed $1.5 trillion defense budget, which includes nearly $70 billion allocated for operations related to the conflict with Iran.
Official Estimate Lower Than Independent Projections
Responding to questions from Democratic Senator Dick Durbin, Hegseth said the Pentagon’s current estimate stands at $37.5 billion.
“The estimate we have as of today is $37.5 billion,” Hegseth told lawmakers.
He explained that the figure includes certain operations and maintenance expenses projected through the end of September, though he did not provide a detailed breakdown of the costs.
Independent Analysts Predict Higher Economic Impact
While the Pentagon’s estimate covers direct military expenditures, independent analysts believe the broader economic impact is substantially higher.
According to Moody’s Analytics, the overall cost to the United States could reach as much as $150 billion when indirect effects—such as rising energy prices, higher transportation costs, and broader economic disruptions—are taken into account.
Economists note that prolonged instability in the Middle East has contributed to increased global oil prices, placing additional financial pressure on American consumers and businesses.
Defense Budget Under Scrutiny
The updated war cost was disclosed as US lawmakers reviewed the administration’s proposed $1.5 trillion defense budget, one of the largest military spending requests in American history.
The budget includes funding for ongoing military operations, modernization programs, weapons procurement, and support for US forces deployed across the Middle East.
The hearing comes as the conflict between the United States, Israel, and Iran continues to intensify, with Washington facing growing questions from lawmakers over both the strategic objectives and the long-term financial burden of the military campaign.
