The United States has engaged in eleven consecutive nights of military strikes against Iran, escalating a conflict that has disrupted global shipping and stalled oil and gas transport through the Strait of Hormuz. US Defense Secretary Pete Hegseth recently confirmed the war has cost the US $37.5bn to date.
Escalating Strikes and the Strait of Hormuz
The military campaign, dubbed Operation Epic Fury
, has shifted from its initial goal of regime change to a desperate attempt to reopen the Strait of Hormuz. This follows retaliatory strikes by Iran on US air bases and neighboring Gulf states, which have accused Iran of targeting vital desalination infrastructure.
The conflict has effectively paralyzed the world’s most critical maritime oil bottleneck. Before the war, 20 percent of the global oil supply moved through the Strait of Hormuz. Today, vessels carrying oil, gas, and fertilizer remain at a standstill as both the US and Iran claim control over the passage.
Senate Testimony and the Rising Costs of Conflict
US Defense Secretary Pete Hegseth appeared before the Senate this week to address the mounting financial and human toll of the intervention. As reported by the BBC, the White House is now seeking tens of billions of dollars in additional funding to sustain the war effort. Lawmakers have expressed fury over the $37.5bn price tag and the recent deaths of three American service members.
For more on this story, see US Strikes Iran for Seventh Straight Night as Strait Conflict Escalates.
The administration’s strategy faces intense scrutiny. While Hegseth previously claimed that early strikes—which killed Supreme Leader Ali Khamenei, had cut off the head of the snake,
the Iranian regime has demonstrated significant resilience. Vali Nasr, a professor of International Affairs and Middle East Studies, noted that President Donald Trump appears to have drastically underestimated Iran’s capacity for enduring pain
and is now attempting to bomb his way out of a conflict of his own making.
This follows our earlier report, U.S. Strikes Iranian Military Sites for 10th Straight Night Amid Conflict.
The Collapse of the June Ceasefire
A brief respite occurred in mid-June when the US and Iran signed a memorandum of understanding intended to initiate a 60-day negotiation period regarding the future of the strait. That agreement dissolved rapidly after Iran fired on three commercial tankers operating near the coast of Oman. The tankers were utilizing a shipping lane that Tehran had not approved, marking the end of the fragile diplomatic window.
Read also: Iran Strikes Gulf Energy Infrastructure as Regional Conflict With US Intensifies.
The situation remains volatile, with the Houthis threatening a maritime embargo on Saudi Arabia. The conflict has rippled into domestic politics as well; even the UK’s new prime minister, Andy Burnham, has found his first diplomatic calls with President Trump dominated by the crisis at the strait.
Market Volatility and Regional Risks
The ongoing instability continues to pressure global energy markets.
