US Pauses Iran Strikes as Hormuz Blockade Fuels Diplomacy Push

Defense Secretary Pete Hegseth told senators this week that the war in Iran has cost $37 billion so far. Multiple Pentagon estimates and emergency funding requests point to a far larger figure already exceeding $100 billion when munitions, naval operations and supplemental spending are included. The discrepancy comes as the administration seeks an additional $67 billion in emergency funds on top of a $454 billion increase in the regular Pentagon budget for next year.

Hegseth appeared before the Senate Appropriations Committee on Tuesday and defended the spending as a necessary response to Iranian threats in the Strait of Hormuz. Lawmakers pressed him on why casualty counts had been revised downward from 18 to 14 U.S. troops killed. Pentagon officials attributed the change to a review that removed four deaths occurring after an April ceasefire declaration, including Pvt. Isabella Gonzales and 1st Lt. Tyler Ramirez. The Defense Casualty Analysis System listed the adjustment as a data correction.

Iranian officials announced on Sunday that they have halted retaliatory strikes after two nights without U.S. bombardment. The pause follows 13 consecutive nights of American air strikes that began in July. Tehran said its actions remain conditional on Washington maintaining the lull. At the same time, Houthi forces in Yemen launched missiles and drones at Saudi oil facilities on the Red Sea, an escalation officials in Riyadh linked to Iranian coordination.

The naval blockade around the Strait of Hormuz continues. U.S. Central Command released footage of forces boarding a commercial tanker in the Arabian Sea on Saturday. Commanders reported redirecting 12 vessels and disabling two others that did not comply. A separate incident in the Caspian Sea involved a Ukrainian strike on an Iranian commercial ship that killed one sailor, raising the possibility of another theater in the widening conflict.

Democrats in Congress criticized a new nuclear cooperation agreement with Saudi Arabia announced by the Department of Energy. The deal would transfer U.S. technology for civilian nuclear power while including safeguards against weapons development. Rep. Jamie Raskin called the proposal reckless given regional tensions, while Rep. Gregory Meeks warned it could trigger an arms race. Republicans defended the agreement as a step toward stronger alliances.

President Trump has described the campaign as limited and successful in degrading Iranian capabilities. Private assessments from military advisers, however, indicate that core objectives such as ending Iran’s nuclear program and changing its government remain unmet after five months. The administration has not scheduled further large-scale strikes in recent days, citing concerns over munitions stocks and the risk of broader involvement from Gulf states.

Casualty revisions and budget projections have drawn renewed attention to how the Pentagon accounts for the conflict. Acting press secretary Joel Valdez described earlier discrepancies as temporary data issues. Opposition lawmakers said the adjustments obscure the full human and financial toll while the war expands into new areas including shipping lanes and proxy attacks.