US-Iran war cost hits $37.5 billion as Hegseth seeks $67 billion more for Pentagon

The US military campaign against Iran has cost an estimated $37.5 billion so far, Defence Secretary Pete Hegseth told lawmakers on Tuesday, marking a sharp increase from the nearly $29 billion estimate made public in May.

Appearing before the Senate Appropriations Committee alongside Chairman of the Joint Chiefs of Staff General Dan Caine, Hegseth said the updated figure includes projected costs through 30 September, covering military pay and other expenses tied to the ongoing conflict.

The hearing was Hegseth’s first public appearance before lawmakers since the United States resumed military operations against Iran earlier this month.

During the hearing, Hegseth defended the administration’s handling of the war and backed a request for approximately $67 billion in additional Pentagon funding to sustain military operations.

Responding to questions from senators, Hegseth argued that US strikes had severely degraded Iran’s military capabilities, although he acknowledged Tehran still retained the capacity to respond.

“I acknowledge they still have capabilities, no doubt,” Hegseth said, adding that the sustained US campaign had left Iran’s military in its weakest position to date.

“The amount of damage that we’ve done to them over the course of these series of operations has put them in the worst place they’ve ever been,” he told the committee.

Hegseth also said some Iranian ballistic missiles had survived the American strikes because they were stored in deeply buried facilities beyond the reach of certain attacks.

The updated cost estimate underscores the growing financial burden of Washington’s military campaign as the Pentagon seeks fresh funding from Congress to continue operations against Iran.