United States Secretary of Defense Pete Hegseth has disclosed that the country has spent an estimated $37.5 billion on the ongoing conflict involving Iran, marking the latest official assessment of the cost of the war.
Hegseth made the disclosure on Tuesday, July 21, 2026, while appearing before the Senate Appropriations Committee alongside Chairman of the Joint Chiefs of Staff, Gen. Dan Caine, to defend the administration’s proposed $1.5 trillion defence budget, which includes nearly $70 billion earmarked for military operations related to the Iran conflict.
Responding to questions from Democratic Senator Dick Durbin, Hegseth said, “The estimate we have as of today is $37.5 billion.”
He explained that the figure includes certain operations and maintenance costs expected to continue through the end of September but did not provide a detailed breakdown of the expenditure.
The latest estimate represents an increase of about $8 billion from the $29 billion projection released by President Donald Trump’s administration in May.
The Senate hearing came as hostilities between the United States and Iran intensified following the collapse of a memorandum of understanding (MoU) that had suspended attacks since June 17.
On Monday, ahead of a tenth consecutive night of U.S. airstrikes, President Trump warned that Iran would “pay” after two American soldiers were killed during weekend attacks.
The president has also threatened further military action, including strikes on Iranian energy infrastructure and bridges, the deployment of ground troops to seize Kharg Island, and attacks on the underground nuclear-linked facility known as Pickaxe Mountain.
According to U.S. officials, recent military operations have focused on locations believed to support Iran’s ability to project influence over the strategically important Strait of Hormuz.
Iran has, however, vowed to continue attacks on U.S. interests across the region. Reports indicate that the latest exchanges have caused damage to desalination and power plants in Kuwait, while other facilities were hit in Bahrain and Jordan. Yemen’s Houthi movement, an Iranian ally, has also announced a maritime blockade against Saudi Arabia.
In his opening remarks before the committee, Hegseth said the prolonged conflict had placed considerable strain on U.S. weapons stockpiles since fighting began on February 28.
He told lawmakers that additional funding was needed to expand production capacity and speed up the delivery of critical military equipment, including solid rocket motors, Joint Direct Attack Munitions (JDAMs), hypersonic weapons and counter-drone systems.
The defence secretary also warned that failure by Congress to approve the requested defence budget could affect military readiness.
“Training in the future would have to be curtailed if we do not get our budget needs met and met urgently, and yes, some of that has to do with the current budget cycle and how things come together,” Hegseth said.
