Pentagon raises cost of war in Iran to $29 billion: Live updates
WASHINGTON — Defense Secretary Pete Hegseth on Tuesday said the Trump administration has a plan to escalate the war in Iran "if necessary" as the Pentagon raised the war's overall cost to $29 billion nine weeks into the conflict.
Pentagon officials disclosed the increased cost, up from $25 billion projected last week, during a House Appropriation subcommittee meeting while a ceasefire between the United States and Iran hangs in the balance. The Pentagon is seeking $1.5 trillion in the next federal budget and more than $200 billion in supplemental funding from Congress amid the war in Iran.
President Donald Trump on Monday rejected a new offer by Iran to reopen the Strait of Hormuz, calling their proposal a "piece of garbage." He said the ceasefire between the two nations is on "massive life support."
In response to Trump's remarks about Iran's offer, Iran’s Speaker of Parliament Mohammad B. Ghalibaf said in a statement Monday that there's "no alternative" but to accept the country's 14-point proposal. "Any other approach will be completely inconclusive; nothing but one failure after another. The longer they drag their feet, the more American taxpayers will pay for it," Ghalibaf added.
The uncertain direction of the war comes as new polling shows most Americans grow impatient with the war’s financial toll on their daily lives. They also say that Trump hasn’t convinced them the fight is necessary.
U.S. gas prices remain at levels not seen since the gas crunch that came in 2022 when Russia launched its invasion of Ukraine. The average price for a gallon across the country Tuesday morning was nearly $4.50, according to GasBuddy.
Trump mocks Iran, touts lasers with AI-generated Truth Social posts
Joey Garrison
President Donald Trump on Tuesday shared a pair of AI-generated photographs on Truth Social that sought to display U.S. military strength over Iran while mocking the Middle East nation.
One of the photos shows a U.S. ship shooting down a plane with the Iran flag with a laser. "Lasers: Bing, Bing GONE!!!" a caption reads.
A few minutes later, Trump posted a second AI-generated photo showing a US plane blowing up two Iranian ships. "BYE, BYE 'FAST BOATS'" the caption reads.
Trump made the posts during a rapid-fire spree of posts he made Tuesday morning targeting Democrats and defending his war in Iran. The president is set to depart the White House on Tuesday afternoon on his way to China for a high-stakes meeting with President Xi Jinping.
Stocks, bonds sell off as war fuels inflation
Andrea Riquier
U.S. stocks slumped on Tuesday after a reading of inflation hit a 3-year high and an end to the Iran conflict remained elusive.
The Dow Jones Industrial Average was off about 10 points, but the broad S&P 500 lost nearly 0.4%. The Nasdaq Composite, which is comprised of companies more sensitive to interest-rate gains, was off nearly 200 points, or 0.7%.
The benchmark U.S. 10-year note, meanwhile, jumped 4 basis points to 4.454%, a sign that borrowing costs will remain higher.
Before the market open, the consumer price index showed prices gaining 3.8% compared to a year ago, mostly due to a 28.4% yearly surge in the cost of gas.
The Pentagon on Tuesday said that the cost of the war had hit $29 billion.
After moderating over the past few weeks in anticipation of a conclusion to the war, crude oil jumped back above $100 a barrel late last week. It was up more than 3% on Tuesday, near $108.
Gas prices also remain elevated: the national average for a gallon of unleaded was $4.504, according to AAA. While the White House and various lawmakers continue to mull proposals to suspend the national gas tax, analysts believe that would be shortsighted – and not nearly enough relief given how high prices have risen.
Pentagon increases cost of Iran war to $29 billion
Joey Garrison
The Pentagon increased its cost of the war in Iran to $29 billion nine weeks into the conflict, up from the $25 billion the Trump administration estimated last week.
"Now we think it's closer to $29 billion," Jules Hurst III, the Pentagon's acting comptroller, told a House Appropriations subcommittee on Tuesday.
The figure reflects the cost of the war so far and does not include future projected expenditures.
Hurst said the revised projections came as a result of updated costs to repair and replace equipment and updated operational costs. He said $24 billion has gone toward munitions as well as the repair and replacement of equipment.
Hegseth says US has plan to 'escalate' war in Iran 'if necessary'
Joey Garrison
Defense Secretary Pete Hegseth told members of Congress the Trump administration has "a plan" for either escalating and deescalating the war in Iran, depending on how events unfold.
"I would say we have a plan for all of that," Hegseth said. "We have a plan to escalate if necessary. We have a plan to retrograde if necessary. We have a plan to shift assets. Certainly in this setting, we wouldn't reveal what the next steps may be."
Hegseth, appearing Tuesday before the House Appropriations subcommittee, was responding to a question from Rep. Betty McCollum of Minnesota, the committee's Democratic ranking member. She asked whether the Pentagon has a "plan B" if Congress does not authorize the administration's $1.5 trillion budget request amid the Iran War.
President Donald Trump has rejected a recent offer from Iran to reopen the Strait of Hormuz and said a ceasefire between the two nations is on "massive life support."
Two-thirds of Americans say Trump hasn't made case for Iran war: Poll
Cindi Andrews
Two-thirds of Americans say President Donald Trump hasn't made a clear case for going to war with Iran, and almost as many are feeling the financial pinch from rising gas prices caused by the conflict, according to a Reuters/Ipsos poll released on Monday.
About 66% of those polled said Trump hasn't "clearly explained" U.S. military goals in Iran, and 63% said their financial situation has been impacted by the steep rise in gas prices, according to Reuters.
The poll also found that 65% of respondents blame the Republican Party for the rise in gas prices, while 27% blame Democrats.
At the same time, the poll shows a slight uptick in Trump's approval rating, to 36%. A late April Reuters/Ipsos poll put Trump's approval at 34% – the lowest mark of his second term. His highest approval in the poll this term was 47% in January 2025.
Read more about the poll here.
Trump appears miffed over Iranian regime’s continued grip on power
Michael Loria
President Trump appeared dismayed Monday that the regime in control of Iran has not faced stiffer pushback within the country.
"The people," Trump said, referring to Iranians, "they want to go out on the streets. [But] they have no weapons, they have no guns."
Trump took aim at the Kurds, an ethnic minority opposed to the regime, for not taking the fight to Tehran as some had believed they would do.
"The Kurds disappointed us. The Kurds take, take, take," Trump said. "I’m very disappointed in the Kurds."