The United States is facing significant war costs and a depleted defense budget due to the prolonged conflict in Iran, yet President Donald Trump is signaling further military action. He has indicated plans for additional strikes on Iran's underground nuclear facilities and warned of a response to Houthi threats in the Red Sea, raising concerns about increased burdens on U.S. military resources and ammunition.
Iran War Costs Reach $37.5 Billion, Raising Concerns Over U.S. Defense Budget
On July 21, U.S. Secretary of Defense Pete Hegseth testified before the Senate Appropriations Committee that costs related to the Iran conflict have reached $37.5 billion. This figure includes not only actual expenditures to date but also projected military salaries and operational costs through September 30.
As war expenses rise rapidly, some key budgets within the Department of Defense are nearing depletion. The Washington Post reported that “some essential budgets could be exhausted within weeks,” noting that training has already been reduced or canceled, and maintenance budgets for equipment and facilities are being diverted to cover war costs.
In response, the Trump administration has requested an additional $87.6 billion from Congress, with approximately $67.1 billion earmarked for the Department of Defense. However, the approval of this request remains uncertain due to disagreements in Congress over the prolonged war and financial burdens.
To secure immediate funding, the Department of Defense is considering reallocating $4.3 billion designated for training and weapon purchases to other uses. They have sought congressional approval for this move but have not yet received it.
Despite these challenges, President Trump has made it clear that he has no intention of easing military pressure. During a meeting at the White House with Lebanese President Joseph Aoun, he stated that the U.S. would “strike very powerfully” at the so-called 'Pickaxe Mountain' near Iran's Natanz uranium enrichment facility.
Pickaxe Mountain is believed to be a large underground facility under construction by Iran, linked to its nuclear program. Trump warned, “If they have any location related to nuclear activities, we will strike it very powerfully.”
In response, Iran has threatened that if the U.S. attacks its nuclear or other sensitive facilities, it will retaliate against U.S. and allied interests in the region.
Potential Red Sea Conflict Could Strain U.S. Military Resources
The conflict front may expand to the Red Sea. The Iranian-aligned Houthi movement in Yemen has threatened to blockade the Bab el-Mandeb Strait, which connects the Red Sea and the Arabian Sea, targeting Saudi Arabia. In response, Trump stated, “If that happens, we will take care of it,” expressing a willingness to respond.
The Houthi threat is already impacting shipping. They have warned that they could attack vessels using Saudi ports, leading three oil tankers carrying Saudi crude to turn back from their course to Asia in the Red Sea.
If the Houthis proceed with a blockade and the U.S. responds, the burden on U.S. forces could increase. Current and former U.S. officials believe that some ships and aircraft deployed in the Gulf for the Iran conflict may need to be redirected to the Red Sea and near Yemen.
Currently, more than 20 U.S. Navy vessels and hundreds of military aircraft are stationed in the Middle East. To counter Houthi missile and drone attacks, additional air defense capabilities and intelligence assets may need to be deployed, leading to faster depletion of interceptors and various munitions.
Efforts for a diplomatic resolution are ongoing. A proposed 10-day ceasefire, reportedly initiated by Iran, has been conveyed to the U.S. by mediating countries including Qatar, Egypt, Oman, and Pakistan. Discussions are underway to establish safe passage for vessels in the Strait of Hormuz and to revive a memorandum of understanding (MOU) that was effectively nullified last month.
The U.S. maintains that a minimum agreement on the free passage of vessels in the Strait of Hormuz must be reached before any ceasefire. Trump has stated that he will continue military pressure until Iran is ready to negotiate “in a meaningful way.” However, Secretary of State Marco Rubio has indicated that the U.S. remains open to a negotiated resolution.
* This article has been translated by AI.
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