US Defends Cost of War as Iran Threatens to Enrich Uranium or Sming | BBC News

BBC News
BBC NewsMay 12, 2026

Why It Matters

The mounting $29 billion price tag pressures U.S. fiscal policy and domestic politics, while Iran’s enrichment threat and the looming Trump‑Xi talks could reshape regional security and global energy markets.

Key Takeaways

  • Pentagon reports Iran war costs near $29 billion, up $4 billion weekly.
  • Defense Secretary Hexith defends spending amid U.S. inflation and public pressure.
  • Trump‑Xi summit expected to focus heavily on Iran’s conflict and sanctions.
  • Iran threatens 90% uranium enrichment if attacked, escalating nuclear rhetoric.
  • UK pledges drones, jets, warship to secure Strait of Hormuz after war.

Summary

The briefing centered on the soaring cost of the U.S.-Israel conflict with Iran, now estimated at nearly $29 billion—a $4 billion jump from the previous week. Defense Secretary Pete Hexith faced a bipartisan grilling in Congress, defending the expense amid rising American inflation and concerns over depleted munitions and base damage.

Key data points highlighted the financial strain: the Pentagon’s tally excludes infrastructure losses, while the FY27 budget proposal seeks $1.5 trillion to address under‑investment. Simultaneously, the White House is preparing for a high‑stakes Trump‑Xi summit, where Iran‑related sanctions on Chinese entities and the hope of leveraging Beijing’s influence over Tehran dominate the agenda.

Notable remarks included Hexith’s claim the U.S. will “fight to win” and an Iranian lawmaker’s warning of 90% uranium enrichment if attacked. President Trump dismissed Iran’s latest counter‑proposal as “garbage,” while the UK announced drones, jets, and a warship to patrol the Strait of Hormuz, underscoring the widening multinational response.

The implications are stark: American taxpayers face an expanding war bill at a time of domestic cost‑of‑living pressures; diplomatic leverage on China may shape Iran’s calculus; and any move toward weapons‑grade enrichment could trigger a broader regional escalation, threatening global oil flows and market stability.

Original Description

Defence Secretary Pete Hegseth has defended the price of the US's war with Iran as tension grows over whether the current ceasefire will hold.
Following Trump calling Iran's counter-proposal to end the war "garbage", one Iranian lawmaker warned that the country could enrich uranium up to weapons grade level, if Iran is attacked again.
Meanwhile, Iran will be a topic for discussion for Donald Trump as he heads to China for a meeting with President Xi Jinping.
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