$37.5 billion is the Pentagon’s latest estimate for the Iran war, which Pete Hegseth gave senators while pressing for supplemental funding to replenish munitions, cover pay and replace equipment.
The request comes as renewed fighting follows the collapse of an interim ceasefire, with U.S. strikes hitting Iranian command, missile and maritime targets after Iran attacked another tanker in the Strait of Hormuz.
Only three ships transited Hormuz on Sunday, and a tanker attacked off Oman on Tuesday was abandoned by its crew, underscoring how Iran’s pressure on shipping is disrupting a critical oil route.
The conflict is also exacting a human and political toll: 17 U.S. troops have been killed since the war began, more than 100 injured, and Gen. Dan Caine acknowledged airpower alone has limits.
Brent crude has climbed above $90, the U.N. is urging Hormuz to reopen, and Trump said the U.S. has 'no interest' in talks until Iran is ready to meet 'in a meaningful way.'
With two vital sea lanes now under threat, is the global economy on the brink of a catastrophic supply shock?
Will the US-backed deal to disarm Hezbollah secure Lebanon's peace or ignite an even more devastating civil war?
As talks occur amid open warfare, is diplomacy a genuine path to peace or merely a sideshow to the conflict?
Dual Maritime Chokepoint Crisis: July 2026 Oil Market Disruption from Hormuz and Bab al-Mandeb
Overview
In July 2026, the global energy market faces a severe crisis as renewed hostilities in the Strait of Hormuz and escalating Houthi threats in the Bab al-Mandeb Strait disrupt vital oil shipping routes. The Strait of Hormuz, once handling about 20 million barrels of oil daily, is now nearly emptied of shipping due to renewed fighting after the U.S. and Israel launched a war on Iran. This ongoing conflict has triggered the most significant oil supply disruption in modern times, with both chokepoints under threat and global markets struggling to adapt to the sudden shortfall.