Hegseth says Iran war cost $37.5 billion so far as administration seeks more funding

Key Points:

• Iranian-backed Houthi forces have threatened to blockade Saudi-linked shipping in the Bab el-Mandeb Strait, raising concerns about simultaneous disruptions at two critical Middle Eastern energy chokepoints, Bab el-Mandeb and the Strait of Hormuz, which together carry about 25% of global oil supply.
• Shipping traffic through Bab el-Mandeb has already declined significantly, with vessel crossings down 43% from the 2023 peak and Saudi crude loadings falling 34% in two weeks, as Saudi Arabia increasingly relies on this route due to disruptions in the Strait of Hormuz.
• US Defense Secretary Pete Hegseth and Chairman of the Joint Chiefs Gen. Dan Caine testified before the Senate seeking additional funding for the Iran conflict, revealing ongoing covert US military efforts to secure the Strait of Hormuz and highlighting concerns about Russian and Chinese support for Iran.
• President Trump announced imminent strikes on Iran’s Pickaxe Mountain nuclear facility amid escalating regional tensions, while Iranian forces warned that any US attack on their nuclear sites would be considered an expansion of the conflict.
• The situation remains volatile with recent Iranian missile attacks intercepted in Kuwait, Bahrain, and Jordan, and Houthi warnings of a blockade in the Red Sea, though Trump downplayed the blockade threat and indicated plans to support Lebanon against Iran-backed Hezbollah.