$37.5 billion and counting: Hegseth reveals Iran war cost as Pentagon seeks billions more

The US war with Iran has cost Washington an estimated $37.5 billion so far, Defence Secretary Pete Hegseth told lawmakers, as he defended an urgent request for billions of dollars in additional military funding amid growing opposition to the conflict.

Hegseth revealed the latest estimate during a fiery Senate Appropriations Committee hearing. The figure is nearly $8 billion higher than the Pentagon's previous assessment in May, highlighting the rapidly rising cost of the conflict.

The Pentagon is seeking an additional $87 billion from Congress, with about $67 billion earmarked for military operations in the Middle East.

Hegseth described the funding request as an “urgent, necessary” injection of money and called President Donald Trump's proposed $1.5 trillion defence budget a “generational investment” in the US military.

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“Without these funds, we face critical shortfalls that threaten our ability to also simply pay our service members, rapidly replenish equipment and munitions, and sustain vital operations without disruption,” Hegseth told senators.

US-Iran war costs mount as casualties rise

The hearing came days after the Pentagon announced that three more US service members had been killed in the conflict. The American military death toll has risen to at least 17, while more than 100 service members have been injured since early July.

The Pentagon had previously estimated that the war cost the US about $11.3 billion in its first week. A senior Pentagon official put the total cost at around $29 billion on May 12.

The latest estimate comes as the US continues a sustained campaign of strikes against Iran. Tehran has retaliated with attacks against US forces and American allies in the region.

The conflict has also disrupted oil shipments through the Strait of Hormuz, a crucial global energy route, raising concerns over higher fuel prices and wider economic fallout.

Democrats attack Trump administration's war strategy

Democrats on the committee sharply criticised the administration's request for more money, questioning the war's objectives, its rising cost and the lack of a clear exit strategy.

Senator Patty Murray, the committee's top Democrat, warned that the conflict could become “another forever war”.

“This war is now spiralling out of control again,” Murray said.

She also questioned why the administration was seeking tens of billions of dollars in additional funding when Trump has repeatedly said that a deal with Iran is close and that the war could soon end.

“Now, he's asking for $70 billion more — and for us to just trust him it'll all work out fine,” Murray said.

Democratic Senator Jeanne Shaheen also questioned the need for additional funding, pointing out that the Pentagon had yet to spend roughly half of the $150 billion provided in a major budget package passed last year.

“Why are you asking the American people to absorb the cost of a war they don't support?” Shaheen asked.

Hegseth said the remaining money from the earlier package would be spent by September.

Hegseth clashes with senators during fiery hearing

The hearing, which lasted more than three hours, was repeatedly interrupted by anti-war protesters. Some shouted slogans opposing US military action in Iran and Palestine.

Tensions between Hegseth and Democratic senators escalated during questioning over the administration's claims about the war.

Senator Kirsten Gillibrand asked whether the US had destroyed Iran's nuclear capabilities while also questioning why the administration was requesting billions of dollars for a conflict Trump had previously suggested was close to being won.

Hegseth said the Pentagon remained focused on its military objectives.

“We're staying laser-focused on the objective,” he said, accusing Gillibrand of trying to turn the hearing into a political campaign event.

The most heated exchange came between Hegseth and Senator Gary Peters, who described the administration's war strategy as a failure.

“You, sir, are the failure,” Peters told Hegseth.

Peters argued that the problem was not a lack of funding for US troops but a lack of strategy and long-term planning.

Hegseth responded by accusing Democrats of suffering from “Trump Derangement Syndrome” and refusing to provide the money he said the military needed.

Republicans push for war funding package

The Republican funding proposal is expected to move through the budget reconciliation process, allowing the party to advance the legislation without Democratic support if it can secure enough votes within its own ranks.

The package includes roughly $60 billion for war-related military needs and $12 billion for other national security requirements. It also includes $10 billion in farm aid and another $10 billion for changes to voting laws.

The White House has urged Congress to approve the budget resolution “without modification — immediately”.

However, the proposal faces resistance from Democrats and some Republicans. Fiscal conservatives within the Republican Party have demanded that the new spending be offset by cuts elsewhere.

The political battle is unfolding as Congress prepares for its summer recess. The House of Representatives is expected to leave Washington on Thursday, while both chambers are not scheduled to return together until September.

That could delay the Pentagon's access to the additional funds even if Republicans eventually manage to pass the package.

Strait of Hormuz raises fresh concerns

The conflict's impact on the Strait of Hormuz was another major issue at the hearing.

Republican Senator John Kennedy questioned whether Iran could impose tolls on vessels using the strategically vital waterway, through which a significant share of global oil shipments passes.

General Dan Caine, chairman of the Joint Chiefs of Staff, said the possibility was hypothetical and that he did not know what Iran might do.

Kennedy pushed back, demanding clearer answers from the administration.

The uncertainty surrounding the waterway has already contributed to concerns over oil prices and energy supplies. A prolonged disruption could further increase pressure on consumers and economies dependent on energy imports.

Trump says 18 US service members have died

Trump, who was at the White House during the hearing, posted on Truth Social about the length and death toll of past US wars.

He said 18 US service members had died in the war with Iran, which began on February 28, according to his post.

The Pentagon on Tuesday announced the death of Sergeant Michael Emmanuel Swinton, a 30-year-old active-duty soldier supporting overseas operations in Iraq. The military had earlier identified two other US service members killed in Jordan as Private First Class Isabella Gonzales, 19, and First Lieutenant Tyler Feehan, 25.

The latest casualties and rising costs have intensified scrutiny of the administration's decision to continue the conflict even as Trump has repeatedly suggested that a diplomatic resolution could be near.

The Senate is also expected to consider another war powers resolution this week aimed at halting the conflict. Lawmakers have already voted nearly a dozen times on efforts to end the US military campaign.

With inputs from agencies.