US defense chief: Iran war cost $37.5 billion

U.S. Defense Secretary Pete Hegseth told the Senate Appropriations Committee on July 22 that the war with Iran has cost the United States $37.5 billion, and he requested additional appropriations; his opening remarks were interrupted by anti-war demonstrators, officials said.

Reaction pending.

Pentagon testimony on $37.5bn cost

Officials said Hegseth presented the figure during a budget hearing as part of an appeal for more funding to cover ongoing operations related to the Iran conflict. The testimony framed the number as cumulative direct costs to date and accompanied a request for supplemental resources, officials said.

Committee members listened amid demonstrations outside the hearing room; officials said lawmakers did not provide an immediate timetable for consideration. The figure gives appropriators a quantified baseline to assess any supplemental request and to weigh it against other defense priorities, officials said.

The $37.5 billion figure highlights the fiscal hit from the conflict and could influence broader budget trade-offs this calendar year. Energy markets and defense contractors often respond to shifts in perceived escalation risk; traders and procurement planners will monitor committee action for signs of sustained spending movements.

Expect the Senate Appropriations Committee to take up deliberations on the supplemental request by July 29, 2026; watch for markup scheduling and any requests for classified briefings that could alter the scope or pace of congressional review, officials said.