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$25 billion of US taxpayers money lost in Trump-Israel war in Iran as Hormuz standoff remains

ByJai HamidJai Hamid
3 mins read
$25 billion of US taxpayers money lost in Trump-Israel war in Iran as Hormuz standoff remains
  • US taxpayers have spent $25 billion on the Iran war so far.
  • Most of the cost went to munitions, but the Pentagon has not given a full breakdown.
  • The Hormuz standoff is lifting energy prices, with gas at $4.23 a gallon and Brent crude at $115.

US taxpayers are now staring at a $25 billion bill from the Trump-Israel war in Iran, while the Hormuz standoff keeps oil, gas, and shipping markets under pressure.

Jules Hurst, performing the duties of Pentagon comptroller, gave the first official cost figure on Wednesday before the House Armed Services Committee. He said most of the money went to munitions, meaning the war has burned through weapons fast since U.S. strikes began on February 28.

The timing is brutal for President Donald Trump and Republicans. The midterms are six months away, and Democrats are trying to tie the unpopular Iran war to affordability. Gasoline is higher. Fertilizer costs are under pressure.

Energy shipments are disrupted. Voters may not read Pentagon ledgers, but they understand prices fast. Democrats are polling better as Republicans worry about keeping the House and maybe the Senate.

Pentagon puts the Iran war cost at $25 billion while lawmakers still lack the full receipt

Hurst did not explain every item inside the $25 billion estimate. He also did not say if it covers future costs to rebuild or repair U.S. base infrastructure damaged in the Middle East. That gap matters because bases still need repairs, troops need support, and equipment needs replacement.

Rep. Adam Smith, the top Democrat on the committee, answered Hurst with clear frustration. “I’m glad you answered that question. Because we’ve been asking for a hell of a long time, and no one’s given us the number,” Smith said.

The cost equals NASA’s full budget for this year. The math is still unclear because a Reuters source said last month that the first six days alone cost at least $11.3 billion. Now Washington has a bigger number, but not the full breakdown.

Defense Secretary Pete Hegseth defended the spending by pointing to Iran’s nuclear program. “What would you pay to ensure Iran does not get a nuclear bomb? What would you pay?” Hegseth asked lawmakers.

Pete also rejected claims that the war had become a quagmire. “You call it a quagmire, handing propaganda to our enemies? Shame on you for that statement,” he said in response to Garamendi. He also called congressional Democrats “reckless, feckless, and defeatist.”

The U.S. and Iran are now under a fragile ceasefire. The Pentagon has sent tens of thousands of extra forces to the Middle East and kept three aircraft carriers in the region. Thirteen U.S. troops have been killed, and hundreds have been wounded.

Trump weighs Hormuz military options as energy shocks hit voters and peace talks stall

The Hormuz standoff is now moving through the economy. Oil and natural gas disruptions have pushed U.S. gasoline higher and added pressure to farm inputs such as fertilizers. The American Automobile Association said the average U.S. gas price on Tuesday hit its highest level in nearly four years.

A Reuters/Ipsos poll found only 34% of Americans approve of the U.S. conflict with Iran, down from 36% in mid-April and 38% in mid-March. Trump’s popularity has dropped since the U.S. and Israel launched the war.

Trump warned Iran on Wednesday as peace talks stalled over the Strait of Hormuz. He said Iran had “better get smart soon” while weighing military options. 

U.S. gas averages reached $4.23 a gallon, and Brent crude climbed to $115 a barrel early Wednesday. Iran’s rial also fell to a record low against the dollar as Tehran’s economy weakened.

Trump and senior officials met energy executives on Tuesday to discuss keeping Iran’s ports blocked “for months if needed” while trying to limit damage for U.S. consumers. Treasury Secretary Scott Bessent hosted executives from Chevron (NYSE: CVX), Trafi, Vitol, and Mercuria.

Washington showed little interest in Iran’s new offer to end the war and reopen the strait without settling the nuclear dispute. On Truth today, Trump posted: “Iran can’t get their act together. They don’t know how to sign a nonnuclear deal. They better get smart soon!”

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Jai Hamid

Jai Hamid

Jai Hamid has been covering crypto, stock markets, technology, the global economy, and the geopolitical events that affect markets for the past 6 years. She has worked with blockchain-focused publications including AMB Crypto, Coin Edition, and CryptoTale on market analyses, major companies, regulation, and macroeconomic trends. She has attended London School of Journalism and thrice shared crypto market insights on one of Africa’s top TV networks.

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