U.S. Rejects Iranian Maritime Proposal as Conflict Costs Top $25 Billion

Defense Secretary Pete Hegseth faced intense congressional scrutiny on Wednesday while defending the Trump administration's proposed $1.5 trillion defense budget. The Pentagon estimates that total expenditures related to the ongoing Iran conflict have reached $25 billion. Hegseth emphasized the necessity of the record-breaking budget to modernize the military with drones, missile defense, and naval expansion. However, Democratic lawmakers challenged the administration, characterizing the operations as an undeclared war conducted without formal congressional approval. On the diplomatic front, the Trump administration has tacitly rejected a proposal from Tehran that would have seen a mutual lifting of shipping restrictions in the Strait of Hormuz. Sources indicate the White House passed on the maritime concession to ensure that shipping ease does not distract from the primary goal of renegotiating Iran's nuclear program. While an indefinite ceasefire remains in place, the administration continues to hold the threat of renewed military action if diplomatic progress is not achieved. Concurrently, the International Atomic Energy Agency (IAEA) is escalating its demands for inspections at the Natanz and Fordo nuclear facilities. Nuclear verification remains the central point of contention in negotiations, which have currently stalled. The latest round of talks concluded without a breakthrough, leaving both nations in a diplomatic deadlock as the U.S. maintains its 'maximum pressure' posture without setting a specific new deadline for Iranian compliance.