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"The $25 billion war cost given by Pentagon Secretary Hegseth and acting Comptroller Hurst before Congress was a lie. It was a denial of the Iran war’s spiraling costs."
The Pentagon's official estimate of the direct financial cost of the US war on Iran is a nearly threefold undercount of the actual price tag of the war, according to an expert analysis published Wednesday.
Stephen Semler, a senior fellow at the Center for International Policy, produced the new cost estimate for the Popular Information newsletter. Accounting for armament use, troop deployments, and other factors, Semler estimated that the US government spent $71.8 billion on the Iran war over the course of 60 days—an average of $1.2 billion per day.
"Like the estimates from Pentagon leadership and unnamed officials, this figure refers only to direct war costs—near-term expenses for military operations, munitions, and the like—and not indirect costs, which include broader economic impacts, interest on the national debt, and longer-term expenses like veterans’ care," explained Semler, who argued that the Pentagon's $25 billion cost estimate suffers from "incomplete accounting of damaged or destroyed military assets, the exclusion of costs outside the department (including billions of dollars in State Department-funded military aid to Israel), and a flawed method for tracking munition expenditures."

Semler, who detailed his methodology in a separate post, accused top Pentagon officials of attempting to deliberately mislead lawmakers and the American public about the true cost of the war, which is historically unpopular.
"The $25 billion war cost given by Pentagon Secretary [Pete] Hegseth and acting Comptroller [Jules] Hurst before Congress was a lie," Semler wrote Wednesday. "It was a denial of the Iran war’s spiraling costs, one of several foreseen consequences of the Trump administration’s decision to go to war. The closing of the Strait of Hormuz is another predictable consequence."
Semler's analysis was released days after unnamed Trump administration officials told CBS News that they believe the actual US cost of the Iran war is roughly double the estimate offered under oath by Pentagon leaders.
"US officials familiar with internal assessments suggested the war's price tag is closer to $50 billion so far," CBS News reported. "Much of the gap is accounted for by munitions that have been used and need to be replaced. For instance, the Pentagon has lost 24 MQ-9 Reaper drones—sophisticated unmanned aircraft that can cost $30 million or more apiece—underscoring how quickly the financial toll has mounted. Taken together, the higher estimate reflects not only the tempo of operations but also the often unseen costs of attrition, as material lost in the field reshapes the ledger."
Ongoing efforts to calculate the costs of US-Israeli war—which has killed thousands, displaced millions, sent global energy markets into chaos, and sparked fears of a worldwide food crisis—come as Trump continues to threaten Iran with an even more aggressive bombing campaign, which would send the conflict's price tag soaring further.
In a Truth Social post early Wednesday, Trump said that if Iran doesn't agree to US terms to end the war, "the bombing starts, and it will be, sadly, at a much higher level and intensity than it was before."
An Iranian official said Trump's operation "failed completely" and that Iran "will not participate in direct negotiations until the United States formally announces the end of the blockade."
US President Donald Trump announced late Tuesday that he is putting his administration's scheme to guide ships through the Strait of Hormuz on hold after just one full day, a decision that came hours after top American officials touted the president's so-called "Project Freedom" at press briefings.
Trump said in a social media post that he paused the project—which allowed just two commercial ships to pass through the strait—"based on the request of Pakistan and other countries." The US president, whose war of choice is historically unpopular with the American public, also asserted that "Great Progress has been made toward a Complete and Final Agreement with Representatives of Iran," a claim that Iran rejected.
As Pakistan's prime minister welcomed Trump's announcement, an unnamed Iranian official told Drop Site's Jeremy Scahill that the US president's short-lived operation "failed completely" and that his statement announcing the pause of Project Freedom was "riddled with falsehoods." The official added that "we will not participate in direct negotiations until the United States formally announces the end of the blockade."
The US president said in his post that the illegal US naval blockade of Iran would "remain in full force and effect."
"Trump is desperately bouncing from one extreme to another," said political scientist Robert Pape in response to Trump's announcement.
Trump's decision to put Project Freedom on hold came shortly after Pentagon Secretary Pete Hegseth, Joint Chiefs of Staff Chairman Dan Caine, and Secretary of State Marco Rubio hailed the president's initiative as a bold mission to rescue some 1,600 vessels stranded in the Strait of Hormuz, which Iran closed in response to the unlawful US-Israeli war and subsequent naval blockade.
"Iran's plan, a form of international extortion, is unacceptable. That ends with Project Freedom," Hegseth declared during a press briefing on Tuesday morning.
Rubio similarly decried Iran's actions in the Strait of Hormuz—located in Omani and Iranian territorial waters—as violations of international law.
"There is no international law that allows you to say: I’m going to put mines in an international body of water, and I’m going to blow up ships that don’t listen to us and try to go through," said Rubio.
Legal scholar Maryam Jamshidi rejected the top US diplomat's assessment, calling it "all wrong."
"Hormuz is not international waters," Jamshidi wrote. "It’s an international strait composed of the territorial waters of Iran and Oman. Iran can mine its territorial waters during wartime. The laws of naval warfare also allow Iran to target ships in certain cases. The US is the only criminal here."
The president and defense secretary "want you to think we haven’t been at war with Iran for over 65 days," said one Democratic congressional candidate.
While assuring reporters that the ceasefire agreement reached last month between the Trump administration and Iran is holding, Defense Secretary Pete Hegseth on Tuesday said the American forces are acting "aggressively" in the Strait of Hormuz, where he said US Central Command has "established a powerful red, white, and blue dome" as a "direct gift from the US to the world."
The metaphorical "dome" the US has placed over the key shipping route for oil and other goods has taken the form of what the Trump administration is calling Project Freedom, which launched Monday and involves the US guiding ships out of the strait, according to President Donald Trump. Iran effectively shut the waterway more than two months ago in retaliation for the unprovoked US-Israeli war on the country, and the US Navy has blocked ships from going to or from Iran in response.
Hegseth emphasized Tuesday that Project Freedom is "separate and distinct" from the military assault on Iran that began on February 28 with the stated aim of eliminating the country's missile and nuclear capabilities.
"The ceasefire is not over," said the secretary. "We expected there would be some churn, which happened, and we said we would defend and defend aggressively, and we absolutely have."
He added that the US is "not looking for a fight."
Independent journalist Rachel Blevins responded sardonically: "'We are not looking for a fight'—we just murdered your leader, your schoolchildren, and your civilians, we bombed your infrastructure, and we've been trying to strangle your economy with sanctions for years."
Adm. Brad Cooper, the head of US Central Command, told reporters that US warships shot down Iranian cruise missiles that the Islamic Revolutionary Guard Corps (IRGC) had fired at the vessels Navy ships were guiding out of the strait on Monday, and Army helicopter gunships sank six military speedboats from Iran.
As Common Dreams reported Tuesday, an Islamic Revolutionary Guard Corps commander told Iran's state-affiliated media that US forces actually attacked "two small boats carrying people on their way from Khasab on the coast of Oman to the coast of Iran on Monday" and killed five civilians, but did not hit any IRGC ships.
At his press conference with Gen. Dan Caine, chairman of the US Joint Chiefs of Staff, Hegseth insisted that Iran is the "aggressor" even as he threatened the country with restarting "major combat operations" if Trump deems them "necessary."
Project Freedom, said Hegseth, "is about free flow of commerce, all the things that happened before, and only Iran is contesting, so right now the ceasefire certainly holds, but we're going to be watching very, very closely."
One reporter with the Epoch Times asked whether the president plans to seek congressional approval if he decides it is necessary to restart "major combat operations."
Days before the fighting in the strait, Trump notified Congress last Friday that hostilities with Iran had been terminated. The announcement came on the deadline set by the 1973 War Powers Act, which requires US presidents to end conflicts that have not been authorized by Congress no more than 60 days after notifying lawmakers of the hostilities.
Trump told Congress that the fighting has been effectively terminated since the US and Iran agreed to the ceasefire on April 7, a view that Hegseth pushed on Tuesday in response to the question about congressional authorization.
"Our view is... that ultimately with the ceasefire, the clock stops," said Hegseth. "If it were to restart that would be the president's decision. That option is always there and Iran knows that."
Q: Will this administration be seeking congressional approval for any further military operations if the ceasefire breaks down?
Hegseth: Our view is with the ceasefire, the clock stops. If it were to restart, that would be the president's decision. That option is always there.… pic.twitter.com/cz3bIpLeIC
— Acyn (@Acyn) May 5, 2026
NBC News senior national politics reporter Jonathan Allen responded that he had "never heard" of Hegseth and Trump's reasoning for not planning to seek congressional approval for more combat operations.
"Understand that what he is doing here is desperately trying to avoid the War Powers Act," said Fred Wellman, a Democratic congressional candidate in Missouri. "They made up a new interpretation that says the 60-day clock is 'paused' for a ceasefire. Now they are lying and saying this is an all-new, shiny war and not the same one."
He added, "This clown and [the administration's] Republican congressional doormats want you to think we haven’t been at war with Iran for over 65 days."