U.S. reports $37.5B cost for Iran conflict as Red Sea shipping disruptions escalate

Secretary of Defense Hegseth disclosed a $37.5 billion fiscal impact from the ongoing conflict with Iran, which has now expanded to include Houthi-enforced maritime blockades in the Bab el-Mandeb Strait. U.S. forces conducted retaliatory strikes across southern and western Iran following the diversion of Saudi oil tankers. The situation marks a significant escalation in regional kinetic operations and supply chain disruption.