Live Updates: Cost of the Iran War Has Reached $29 Billion So Far, According to a Pentagon Official

The United States has now spent $29 billion fighting the Iran war and every expert watching the numbers says that figure, staggering as it sounds, is a fraction of what the true bill will eventually be.

Acting Defense Department Comptroller Jules Hurst III delivered the updated figure to the House Armed Services Committee on May 12, 2026, confirming that the cost of the US-Israeli military campaign against Iran has climbed by $4 billion in just two weeks up from the $25 billion estimate Hurst provided to Congress on April 29. The increase, he said, reflects “updated repair and replacement of equipment costs” alongside the “general operational costs” of sustaining a massive US military presence across the Middle East and Eastern Mediterranean.

What the $29 billion figure does not include is equally significant: it excludes the cost of repairing extensively damaged US military installations across the region a number that sources familiar with the assessments say pushes the real running total closer to $40–50 billion when base reconstruction is factored in.

What $29 Billion Has Bought and What It Has Cost

The Iran war, which began with US and Israeli strikes on February 28, 2026, has been fought at extraordinary material intensity. The United States currently has three aircraft carriers and an amphibious assault ship deployed across the Middle East and Eastern Mediterranean. The campaign, officially designated Operation Epic Fury, has consumed munitions at a rate that has alarmed defence planners and Congressional oversight committees simultaneously.

A Center for Strategic and International Studies (CSIS) analysis found that the US has burned through approximately:

• 45% of its Precision Strike Missile (PrSM) stockpile
• 50% of its THAAD interceptor missiles
• Nearly 50% of its Patriot air defence interceptor inventory

Senator Mark Kelly, a decorated combat aviator and member of the Senate Armed Services Committee, warned after a Pentagon briefing that he was “shocked how deep we have gone into these magazines” citing Tomahawks, ATACMS, and Patriot rounds as among the most critically depleted systems. CSIS analysts have warned that rebuilding pre-war inventory levels will take one to four years for key munitions — a readiness gap that creates a “near-term risk” to the United States’ ability to respond to a second simultaneous conflict if one were to erupt, whether over Taiwan, in Europe, or elsewhere.

The Pentagon’s response, through Defence Secretary Pete Hegseth, was to call for Senator Kelly to be investigated a political deflection that did little to resolve the underlying supply chain crisis.

The $1 Trillion Question

The gap between the Pentagon’s $29 billion public accounting and the true projected cost of the conflict is enormous — and growing.

Harvard Kennedy School war budgeting expert Linda Bilmes has been unambiguous: “I am certain we will reach $1 trillion for the Iran war.” Bilmes, whose research helped establish the true multi-trillion-dollar cost of the Iraq and Afghanistan wars, notes that the medium-term costs rebuilding damaged bases, restocking high-technology weapons systems, veteran care, interest on war debt, intelligence and reconstruction are essentially invisible in the current Pentagon ledger. At a burn rate of $2 billion per day, the arithmetic is unforgiving.

Al Jazeera’s investigation into the gap between official and real costs framed the divergence precisely: “$25 billion or $1 trillion: How much has the Iran war really cost the US?” The answer depends entirely on whether you count only today’s operational bills or the full generational cost the United States will carry for decades.

The US Stock Market and the Cost of Uncertainty

For investors tracking US stock market news, the $29 billion figure lands at a particularly sensitive moment. The S&P 500 has surged to record highs above 7,400 in part because markets are pricing in an Iran peace deal that would end the oil supply shock. But the Pentagon’s accelerating cost disclosures each revision higher than the last are a reminder that the Israel-Iran war is not winding down on any pre-set timeline, and that the financial exposure to the US government, and by extension US taxpayers, is compounding daily.

Goldman Sachs analysts note that if the conflict extends another two months without a deal, the cumulative economic cost combining military expenditure, energy inflation, GDP drag, and consumer purchasing power erosion will begin to rival the early-phase Iraq war in fiscal impact.

Congress Demands Answers

The $29 billion disclosure has intensified pressure on the administration to either end the war quickly or request a formal emergency supplemental appropriation from Congress a politically explosive step that would require the White House to acknowledge the open-ended nature of a conflict that was originally sold as a decisive, time-limited operation.

Pentagon officials have acknowledged the cost trajectory and indicated they are “seeking additional funding” from Congress, without specifying amounts. The House Armed Services Committee has requested a full accounting of weapons stocks, base damage estimates, and projected replacement timelines documents the Pentagon has so far provided only in classified settings.

The bill is $29 billion and rising. The clock is running at $2 billion a day. And the deal that would stop the meter is still being reviewed in Tehran, at its own pace, on its own timetable.