Pentagon Reports $25 Billion Cost for U.S.-Iran War as Strait of Hormuz Closure Drives Up Gas Prices

Bearish (-0.7)Impact: High

Published on April 29, 2026 (4 hours ago) · By Vibe Trader

A top Pentagon official, acting Comptroller Jules Hurst III, testified before the House Armed Services Committee that the ongoing U.S. war with Iran has cost approximately $25 billion as the conflict approaches its 60th day [1]. Hurst specified that the majority of these expenses are attributed to munitions, operations, maintenance, and equipment replacements, all under the codename Operation Epic Fury [1]. He clarified that the $25 billion figure reflects costs already incurred, particularly for munitions expended and other operational needs [1].

During the hearing, Rep. Adam Smith, D-Wash., noted that Congress had not received an updated cost breakdown since the war began and questioned whether the Defense Department would request supplemental funding. Hurst responded that a supplemental funding request would be formulated and sent to Congress through the White House once a full assessment of the conflict's cost is completed [1]. He also committed to providing lawmakers with a detailed breakdown of the $25 billion expenditure following questions from Rep. Maggie Goodlander, D-N.H. [1]. Goodlander criticized the Pentagon for not having a basic breakdown of the spending after nearly 60 days of conflict and questioned whether the funds were diverted from other allocations. Hurst replied that the department routinely manages contingency operations within its normal budget [1].

Previously, Pentagon officials reported to Congress that the war cost $11.3 billion in just the first six days [1]. The rising costs coincide with soaring gas prices in the U.S. and globally, attributed to the ongoing closure of the Strait of Hormuz, a critical maritime route for oil tankers [1]. In response to the economic impact, President Donald Trump and senior administration officials met with energy industry executives to discuss potential next steps regarding the blockade of Iran's ports and strategies to minimize the impact on American consumers [1].

Negotiations between the U.S. and Iran have stalled, with President Trump warning that Iran "better get smart soon" [1].

CONCLUSION

The U.S.-Iran war has already cost $25 billion, with significant operational and economic repercussions, including higher global gas prices due to the Strait of Hormuz closure. Congressional scrutiny over war spending is intensifying, and further supplemental funding requests are expected as the conflict continues. Market uncertainty remains high amid ongoing geopolitical tensions and stalled negotiations.

Turn today's news into tomorrow's trade.

Try Vibe Trader Free →

Feel free to email us at team@vibetrader@gmail.com

Was this page helpful?

Related Articles

Anthropic Seeks $900 Billion Valuation in New Funding Round, Surpassing OpenAI

Anthropic, the artificial intelligence startup founded by former OpenAI executiv...

Read more

Jerome Powell to Remain on Fed Board After Chairmanship Ends Amid Political Tensions and Unchanged Rates

Federal Reserve Chair Jerome Powell announced he will remain on the Fed's Board...

Read more

U.S. Seizes Nearly $500 Million in Iranian Crypto as Operation Economic Fury Escalates Pressure on Tehran

U.S. Treasury Secretary Scott Bessent announced that the United States has seize...

Read more