Trump Rejects Iranian Shipping Deal as Pentagon Reports $25 Billion War Cost

President Donald Trump has rejected a diplomatic proposal from Iran aimed at easing tensions in the Strait of Hormuz. The proposal sought a mutual lift of shipping restrictions and a postponement of nuclear talks in exchange for ending the U.S. blockade. Trump insisted on immediate nuclear concessions instead, warning Tehran via social media to "get smart soon" while signaling that U.S. operations may extend beyond the initial month-long timeline into a sustained "economic siege." On Capitol Hill, Defense Secretary Pete Hegseth and Pentagon financial chief Jules Hurst III faced intense scrutiny from the House Armed Services Committee. Officials confirmed that war expenses have reached $25 billion, primarily spent on munitions and equipment replacement. The hearing also highlighted internal friction within the military following Hegseth's refusal to discuss the reported firing of Army Chief of Staff Gen. Randy George. The regional situation remains volatile as Iran warns of "unprecedented military action" in response to the blockade, which has already forced 39 ships to turn around. Simultaneously, a ceasefire extension in Lebanon was fractured following the death of an Israeli contractor by a Hezbollah drone, prompting the IDF to destroy two major tunnels near the village of Canara. Global energy markets remain on edge as Iran continues to restrict transit through the critical Strait of Hormuz.