Pentagon puts Iran war price tag at $25 Billion as USS Gerald R. Ford prepares to leave region

Defense Secretary Pete Hegseth testified to Congress on April 29, 2026, that the two-month Iran war has cost an estimated $25 billion, primarily for munitions, operations, and equipment replacement, with no end date provided. The conflict has escalated into a naval standoff where Iran dropped mines across the Strait of Hormuz in March—a waterway through which 20 percent of the world's energy normally passes—while the U.S. has blockaded Iranian ports since April 13, preventing Iran from selling 69 million barrels of oil worth over $6 billion. The war has caused severe collateral damage, including a deadly U.S. strike on an Iranian elementary school that killed more than 165 people, and is costing the European Union nearly $600 million daily with warnings of jet fuel shortages within weeks. As the USS Gerald R. Ford carrier strike group prepares to depart after nearly a year of deployment, Iran refuses peace negotiations while the blockade continues, and the Trump administration considers extending the blockade for months despite Russian warnings and the challenge that demining the Strait of Hormuz could take months using technology Ukraine developed for Black Sea operations.

Military and Financial Costs of the Iran Conflict

• ▪The Iran war has cost an estimated $25 billion so far as of the Pentagon's testimony to Congress
• ▪A deadly strike on an Iranian elementary school killed more than 165 people, including many children, two months prior to Pete Hegseth's testimony
• ▪The Pentagon's budget request for the fiscal year is $1.5 trillion
• ▪The Pentagon will formulate a supplemental budget request through the White House for Congress once a full assessment of the Iran conflict cost is complete
• ▪The U.S.-Israeli war with Iran is costing the European Union almost 500 million euros ($600 million) every day

U.S. Blockade of Iranian Ports and Strait of Hormuz Crisis

• ▪The U.S. blockade of Iranian ports has been in place since April 13
• ▪There are 41 tankers with 69 million barrels of oil that the Iranian regime cannot sell due to the U.S. blockade
• ▪U.S. forces have redirected 41 vessels as part of the blockade of Iranian ports as of the April statement by U.S. Central Command
• ▪The blocked Iranian oil represents an estimated $6 billion-plus from which Iran's leadership cannot financially benefit

Diplomatic Efforts and International Responses

• ▪More than 350 billion euros were spent on untargeted energy measures during the 2022 fuel crisis, which had a huge impact on EU member states' finances
• ▪President Trump told reporters that Vladimir Putin wanted to help remove Iran's enriched uranium from the country
• ▪President Trump told Vladimir Putin he would rather have Putin be involved with ending the war with Ukraine than helping with Iran's enriched uranium
• ▪Russian President Vladimir Putin warned President Trump against damaging consequences of new military action in Iran during a phone call

Ukraine's Demining Technology as Potential Solution

• ▪Ukraine has developed the TLK-150, an 8-foot-long, roughly 50-pound underwater drone that has been mapping out minefields below the Black Sea's surface
• ▪Russia has dropped thousands of mines across the Black Sea since 2022

Perspective of European Union leadership

• ▪The U.S.-Israeli war with Iran is imposing significant economic strain on the European Union at nearly 500 million euros daily