Iran latest: Pentagon new estimates put Iran war cost at $29 billion

The ongoing ceasefire between the United States and Iran may have survived through Monday, but President Donald Trump indicated the current break in hostilities is on "life support."

Trump’s warning about a potential resumption of active fighting came after the U.S. rejected Iran’s latest peace proposal, which the president called a "piece of garbage," adding that he "didn’t even finish reading it."

Reports indicate both sides remain divided, with Washington pushing for meaningful nuclear concessions and Tehran wanting a more limited deal that would reopen the Strait of Hormuz and end the blockade as a precursor to further talks.

San Antonio-class amphibious transport dock ship USS New Orleans (LPD-18) patrols the Arabian Sea enforcing a maritime blockade against ships entering or exiting Iranian ports and coastal areas, April 28, 2026. (U.S. Navy photo)

As the conflict continues to weigh heavily on drivers’ wallets, with gasoline prices stuck at over $4.50 per gallon and diesel fuel sitting more than a dollar a gallon higher than that, according to AAA’s latest figures, Trump indicated he would back a plan to offer a little relief by suspending the federal gasoline tax.

Any relief from the gas tax, which currently sits at around 18 cents per gallon for gas and 24 cents per gallon for diesel, would require the approval of Congress. 

Here's the latest:

Hegseth interrupted by protester

A protester (L) interrupts as U.S. Under Secretary of Defense Comptroller Jules Hurst and U.S. Secretary of War Pete Hegseth arrive to appear for a House Committee on Appropriations, Subcommittee on Defense hearing in the Rayburn House Office Buildin

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1:18 p.m. ET: A woman interrupted Secretary of Defense Pete Hegseth during his testimony at Congress on Tuesday. 

Hegseth was discussing the president's budget request when the woman stood up behind him and began shouting. 

Security escorted her out of the room as she continued shouting. 

Hegseth says military fighting to ensure ‘Iran never has a nuclear weapon’

12:10 p.m. ET: Secretary of Defense Pete Hegseth testified before a U.S. Senate Appropriations Committee Tuesday morning. In addition to the mention of the $1.5 trillion budget being used to ensure the U.S. "continues to maintain the most capable military," he also added reiterated a purpose that has been echoed by President Trump. 

"We fight to win in every scenario, to include ensuring Iran never has a nuclear weapon," Hegseth told the committee.

Iran war cost US $29 billion

11:22 a.m. ET: A new estimate from the Pentagon comptroller puts the cost of the U.S. war against Iran at around $29 billion. 

"The joint staff team of the comptroller team are constantly looking at that estimate. And so now we think it's closer to 29," said Pentagon comptroller Jules Hurst. 

A previous estimate on the cost of the Iran war from April had a total amount of $25 billion. 

Hegseth to testify before appropriations committee

U.S. Secretary of War Pete Hegseth delivers opening remarks during a bilateral meeting with South Korean Minister of National Defense Ahn Gyu-back at the Pentagon on May 11, 2026 in Arlington, Virginia. (Photo by Chip Somodevilla/Getty Images)

7:22 a.m. ET: Secretary of Defense Pete Hegseth is expected to take questions from lawmakers Tuesday as he appears before the House Appropriations Committee Tuesday morning. 

One of the biggest topics on mind would be the massive $1.5 trillion budget request, which would increase defense spending by nearly 50 percent from 2026 levels. He's also likely to hear questions concerning the military's strategy toward Iran as peace talks remain at a stalemate.