---
title: 'Iran War Costs Exceed $29bn Amid Rising Tensions'
url: 'https://thediplomaticinsight.com/iran-war-costs-exceed-29bn-ceasefire-uncertainty-grows/'
author: 'News Desk'
date: '2026-05-13T11:12:36+05:00'
categories:
  - 'Featured'
  - 'Middle East'
  - 'World'
tags:
  - 'Ceasefire'
  - 'Donald Trump'
  - 'Iran war'
  - 'Pentagon'
  - 'Xi Jinping'
---

# Iran War Costs Exceed $29bn Amid Rising Tensions

**Washington (TDI):** The Pentagon has said that the ongoing conflict with Iran has cost the United States more than $29 billion since fighting began in February, as hopes for a lasting peace continue to weaken amid hardened positions from both Washington and Tehran.

The statement comes at a time when US consumer inflation has also climbed to a three-year high. Jules Hurst, acting comptroller at the Pentagon, told lawmakers that the figure includes equipment repairs, replacements, and operational expenses. He noted that the estimate is continuously being reviewed by defense officials.

Earlier, the Pentagon had placed the cost at around $25 billion at the end of April, showing a rapid increase in military spending within weeks.

The developments coincided with President Donald Trump preparing for high-level talks with Chinese President Xi Jinping, with discussions expected to focus on trade as well as sensitive issues including Taiwan and Iran.

**Read More: [Oil Climbs as Uncertainty Over US-Iran Talks Persists](https://thediplomaticinsight.com/oil-climbs-as-uncertainty-over-us-iran-talks-persists/)**

According to reports, US officials had also rejected an Iranian response to a proposed peace framework, while Trump described the ceasefire situation as being on “life support.” Some US media outlets reported that parts of his administration were considering the possibility of resuming military operations.

Speaking to reporters, Trump said the US did not need external assistance to deal with Iran and expressed confidence that Washington would prevail either through diplomacy or force. He also claimed that Iran’s military capabilities had been severely degraded, though he reiterated that Tehran would not be allowed to develop nuclear weapons.

In response, Iranian parliamentary spokesperson Ebrahim Rezaei said Iran could consider enriching uranium up to 90 percent purity, levels associated with weapons-grade material, if it is attacked again. He added that parliament would review the option.

Separately, Iranian Revolutionary Guard Corps (IRGC) units conducted military exercises in Tehran, signaling continued readiness for potential escalation.

**Read More: [Trump’s Iran War Leak Complaints Trigger Aggressive Probe: Report](https://thediplomaticinsight.com/trumps-iran-war-leak-complaints-trigger-aggressive-probe/)**

The Strait of Hormuz remains a central flashpoint. Iranian military officials said the waterway is now being treated as a broader operational zone with expanded strategic significance.

Meanwhile, EU foreign policy chief Kaja Kallas suggested that the EU’s naval mission in the Red Sea could be extended to the Strait of Hormuz after the conflict ends, depending on member state support.