US Pentagon Faces Budget Crisis After Iran Operations, Seeks Additional $80 Billion

The United States Department of Defense has asked Congress to allocate an additional $80 billion to cover expenses related to military operations in Iran and other costs, according to a report by the Wall Street Journal citing sources familiar with the discussions. Deputy Secretary of Defense Stephen Feinberg communicated the military’s financial needs in a telephone conversation with members of Congress this week, the report published on Thursday evening stated. Pentagon leadership also warned that they may run out of operational funds by the summer if Congress fails to pass a new military spending bill. The Pentagon’s budget for fiscal year 2026 currently stands at approximately $1 trillion. On 28 February, the United States and Israel launched strikes against several targets in Iran, resulting in damage and civilian casualties. On the night of 18 June, Iran and the US signed a memorandum remotely to end the military conflict, which also established a timeline for the US to lift its naval blockade and for Iran to restore shipping through the Strait of Hormuz. Iran, through Mohammad Bagher Ghalibaf, warned the US against violating the new peace agreement, stating that Tehran is prepared to respond harshly to any transgressions. It is considered crucial for all parties involved in the conflict to adhere to the agreement reached between Iran and the United States and to prevent a new escalation. On Thursday morning, Sharif announced that the historic Islamabad Memorandum of Understanding between the US and Iran came into effect immediately upon signing. The United States clarified that the MoU includes several key points, including the reopening of the Strait of Hormuz and Iran’s commitments regarding its nuclear programme. Three tankers carrying Iranian crude oil were reported to have successfully exited the US blockade in the Strait of Hormuz area on Tuesday, 16 June.