The financial cost of the Iran war to the United States has climbed to $29 billion, according to a senior Pentagon official, as fears grow over rising oil prices, economic pressure, and the possibility of a prolonged conflict in the Middle East.
The updated figure is $4 billion higher than the estimate the Pentagon gave Congress just two weeks ago, and experts warn the final price tag could eventually exceed $1 trillion.
Speaking before departing for China, Donald Trump brushed aside concerns about the economic strain on Americans, saying his administration’s priority remains preventing Iran from obtaining a nuclear weapon.
“I don’t think about Americans’ financial situation,” Trump told reporters. “I think about one thing: We cannot let Iran have a nuclear weapon.”
The comments came as Americans continue to face rising fuel prices linked to the conflict’s disruption of global oil supplies.
According to the US Energy Department, gas prices are now expected to average $3.88 per gallon this year, while oil prices are projected to remain above $100 a barrel in the coming weeks.
The war has also rattled global energy markets. The International Energy Agency warned Wednesday that worldwide oil reserves are shrinking at a record pace due to disruptions tied to the conflict.
The agency said global oil stockpiles dropped by 246 million barrels between March and April, raising fears of fresh price spikes if the crisis continues.
The situation around the Strait of Hormuz one of the world’s most important oil shipping routes — remains especially tense. Shipping traffic through the narrow waterway has slowed dramatically since the war began, with fears of attacks and naval confrontations discouraging commercial vessels.
A Chinese-flagged oil supertanker was seen attempting to pass through the strait on Wednesday as Trump headed to Beijing for high-level talks with Xi Jinping.
China remains Iran’s largest oil customer and is seen as a potentially important player in efforts to de-escalate the conflict.
Despite that, Trump downplayed the idea that Washington needed Beijing’s assistance.
“We have Iran very much under control,” he said. “We’re either going to make a deal, or they’re going to be decimated.”
The president is expected to discuss both trade and the Iran conflict during his summit with Xi, though officials say negotiations between Washington and Tehran remain stalled after Trump rejected Iran’s latest proposal over the weekend.
Meanwhile, economists and defense analysts continue to warn that the long-term costs of the war could stretch far beyond military spending.
Harvard Kennedy School public policy expert Linda Bilmes estimates the conflict could ultimately cost American taxpayers at least $1 trillion once veterans’ care, damaged infrastructure, weapons replacement, and broader economic fallout are fully accounted for.
The conflict is also affecting industries beyond energy. The IEA says shortages in oil and gas supplies are beginning to disrupt petrochemical production, including materials used in plastics, fertilizers, and pharmaceuticals.
Air travel has also slowed globally as airlines respond to higher fuel costs and security concerns across the region.
As diplomatic efforts remain uncertain and tensions continue to simmer, financial markets are closely watching Trump’s meetings in China for any signal that the war could either move toward a negotiated settlement or deepen further.
