The cost of the United States' military operations in Iran has climbed to approximately $29 billion, according to testimony delivered before Congress on Tuesday (May 12). The figure represents a $4 billion increase from estimates provided less than two weeks earlier.

Jules Hurst III, the Pentagon's chief financial officer, revealed the updated figure during a budget hearing before the House Appropriations Committee. According to The Wall Street Journal, Hurst explained that the increase stems from updated repair and replacement costs for military equipment, along with broader operational expenses related to the ongoing conflict.

Defense Secretary Pete Hegseth had estimated the war's cost at $25 billion during testimony on April 29. When pressed about when Congress would receive a comprehensive accounting of war expenses, Hegseth said the Trump administration would submit a supplemental funding request separate from the main Pentagon budget but did not provide a specific timeline.

The testimony came as President Trump prepares to travel to Beijing for high-stakes discussions with Chinese President Xi Jinping. During the hearing, Hegseth stated that China has 'a lot of leverage' over Iran, highlighting the complex geopolitical dynamics surrounding the conflict.

Democratic lawmakers used the hearing to criticize the administration over rising costs and what they characterized as insufficient transparency about American objectives in Iran. 'The question must be answered at the end: what have we accomplished and at what cost?' asked Representative Rosa DeLauro of Connecticut, the top Democrat on the House Appropriations Committee.

Representative Betty McCollum, a Minnesota Democrat, accused the Pentagon of a 'consistent lack of transparency' and demanded more clarity about long-term strategy before Congress approves additional funding.

The escalating costs come amid growing concerns about depleted American weapons stockpiles following months of intensive missile and air-defense operations in the Middle East. However, Hegseth dismissed warnings that the conflict had dangerously drained munitions reserves, stating, 'The munitions issue has been foolishly and unhelpfully overstated.'

The war's impact on energy markets has been significant. Crude oil prices rose 2.84 percent on Tuesday, reaching $102.43 per barrel. The Labor Department reported that consumer prices increased 3.8 percent in April, driven largely by higher gasoline and food prices linked to the Iran conflict.

President Trump told reporters that rising inflation is temporary and tied to the war. He also expressed confidence that Iran's economic collapse is inevitable, saying, 'It's just a question of time.'

The administration is considering multiple options to address the economic fallout, including pausing the federal gas tax and potentially restarting Project Freedom, an earlier effort to reopen the strategically vital Strait of Hormuz. Iran has effectively shut down the shipping corridor since the conflict began in late February, causing global energy prices to skyrocket.

Republican Senator Mitch McConnell of Kentucky raised concerns during a separate Senate hearing about the administration's plan to fund crucial Pentagon programs through a reconciliation bill rather than traditional appropriations. McConnell warned that this approach is risky given potential shifts in congressional control following November's elections.

The conflict began on February 28 when the United States and Israel launched military operations against Iran. The White House formally notified Congress on May 1 that hostilities had 'terminated,' though the fragile ceasefire appears increasingly unstable.

Armstrong & Getty