Economy July 22, 2026 12:19 AM

U.S. Signals Strikes on Bridges and Power Plants if Iran Fires on Ships; Cost of Campaign Hits $37.5 Billion

Diplomatic efforts continue even as U.S. and Iran exchange strikes, oil prices climb and lawmakers weigh a large supplemental funding request

By Jordan Park
Share
Twitter Reddit Facebook LinkedIn

The U.S. has warned that it will target bridges and power plants in Iran in retaliation if Tehran fires on vessels transiting the Strait of Hormuz, a move announced by the president on social media. Diplomacy remains active but has not yet halted hostilities, as the U.S. completed an 11th consecutive night of strikes on Iranian targets and Iran has struck U.S. sites and regional shipping. Defense officials told Congress the cost of the campaign has reached $37.5 billion, while internal Pentagon estimates reported in the press suggest the total could be substantially higher.

U.S. Signals Strikes on Bridges and Power Plants if Iran Fires on Ships; Cost of Campaign Hits $37.5 Billion
Summarize with
ChatGPT Perplexity Claude Grok Gemini

Key Points

  • The U.S. announced it will target one bridge or power plant in Iran if Iran fires on ships in the Strait of Hormuz - a policy detailed in a presidential social media post.
  • Diplomatic mediators have proposed a 10-day ceasefire and engaged Iranian officials, but talks have yet to stop the exchange of strikes between the U.S. and Iran.
  • Defense Secretary Pete Hegseth told Congress the U.S. campaign has cost $37.5 billion to date, while press reports cite internal Pentagon estimates between $80 billion and $100 billion; energy markets have reacted with oil prices rising to near six-week highs.

Overview

The United States has declared that it will strike bridges and power facilities in Iran in response to any attacks by Tehran on ships in the Strait of Hormuz, according to a statement issued by the president on social media. The conflict has continued to escalate even as third-party mediators press for a ceasefire and diplomatic arrangements.

Presidential warning

"From this point forward, any time the Islamic Republic of Iran shoots at a ship in the Strait of Hormuz, whether it be by Missile, Rocket, Drone, or any other device or weapon, the United States will bomb and destroy ONE BRIDGE OR POWER PLANT, including those located next to, or in, the Capital City of Tehran."

The post lays out a clear tit-for-tat response: any attack on shipping in the Hormuz corridor by Iran would prompt the United States to target a single bridge or power plant, including those near Tehran.

Diplomatic maneuvering

Officials working to secure a diplomatic resolution remain active, with media reports indicating mediators are attempting to revive talks to contain the conflict as it threatens to spread across the Persian Gulf. Iranian Interior Minister Eskandar Momeni traveled to meet Pakistani mediators this week, and a senior Iranian official cited by Reuters said Iran had been presented with a proposal for a 10-day ceasefire. That proposal was framed as an effort to preserve a framework deal intended to halt hostilities which, the report states, the U.S. and Iran had signed in June.

Despite these efforts, there has been no immediate breakthrough. The president indicated skepticism about new negotiations, saying Washington had "no interest in meeting" with Iran. At the same time, U.S. Secretary of State Marco Rubio, speaking at a gathering of Southeast Asian foreign ministers in the Philippines, said the administration remains open to diplomacy but questioned Iran's commitment to talks. He said, "If they’re serious, we’re serious. If they’re not, then we will do what’s necessary to protect our interests, and also the interests of our allies," and cautioned against allowing Tehran to control oil flows through the Strait of Hormuz, which he said could set a dangerous precedent for other global chokepoints.

Continuing military exchanges

Militarily, the confrontation has intensified. U.S. forces completed an 11th straight night of strikes on targets across Iran, carried out in the hours before Wednesday. The president also warned he could strike a suspected Iranian nuclear site known as "Pickaxe Mountain," saying the U.S. could hit the facility "pretty soon, and very heavily." Iranian officials responded that an attack on nuclear facilities would dramatically expand the conflict, and reports indicate Tehran has moved thousands of uranium-enrichment centrifuges to that site, which is located deep inside a mountain.

Tehran has struck back against U.S. interests in the region, with reported attacks on U.S. military locations in Bahrain, Kuwait and Jordan, and an attack on a tanker in the Strait of Hormuz, according to Reuters. Separately, Iran-backed Houthi forces in Yemen have informed shipping companies that vessels loading or discharging Saudi oil could be targeted, a development that could open a new front affecting crude flows through the Bab el-Mandeb Strait into the Red Sea.

The president said the passage through Bab el-Mandeb has not been closed, but vowed the United States would "take care of it" if the strait were to be shut. In response to the threats, three oil tankers carrying Saudi crude altered course on Tuesday, opting to transit the Suez Canal rather than sail past the Yemeni coast.

Market reaction

Concerns over supply disruption have pushed oil prices to roughly six-week highs, magnifying fears of an energy shock that could prompt inflationary pressure and influence central bank policy on interest rates. The movement in crude prices reflects heightened market sensitivity to any escalation that might impede flows through strategic maritime chokepoints.

Cost to date and funding request

At a congressional hearing, Defense Secretary Pete Hegseth told lawmakers the cost of the U.S. campaign against Iran has risen to $37.5 billion. That figure, he said, accounts for payroll, operations, maintenance and other anticipated costs through the end of the fiscal year in September. The testimony occurred as the administration pressed Congress for a substantial supplemental funding package - a $90 billion request in which the bulk of funds were designated for the Iran conflict.

Media reports published before Hegseth’s remarks suggested the eventual price tag could be much larger. NBC News reported that the Pentagon's internal overall estimate ranged between $80 billion and $100 billion, and indicated much of those higher costs would stem from repairing bases damaged by Iranian strikes.

Where things stand

For now, hostilities continue alongside diplomatic outreach. Mediators are reported to be presenting ceasefire proposals, but neither side has credited negotiations with immediate progress. Military operations have continued on both sides, with consequences already visible in regional shipping patterns and energy markets. Lawmakers are weighing a major funding request as officials provide differing estimates of the campaign's fiscal burden.


Reporting note: Additional correspondents contributed to the coverage included in these briefings.

Risks

  • Escalation of military strikes could further disrupt oil flows through chokepoints such as the Strait of Hormuz and Bab el-Mandeb, impacting energy markets and inflation expectations - sectors affected: energy, financial markets.
  • Continued damage to regional bases and infrastructure may raise the overall fiscal burden of the campaign beyond publicly reported figures, complicating budget and defense spending decisions - sectors affected: defense contractors, government fiscal planning.
  • Potential expansion of hostilities to new fronts, such as attacks on tankers or additional regional targets, creates uncertainty for global shipping and trade routes - sectors affected: shipping, logistics, and commodities.

More from Economy

Canada pledges firm response as U.S. tariff threat looms Jul 23, 2026 U.S. Boosts Short-Term Bill Sales as Borrowing Needs Surge, Raising Refinance Risks Jul 23, 2026 World Bank: Venezuela’s June quakes inflicted $19.6 billion in direct damage; reconstruction costs could near $50 billion Jul 23, 2026 China Sets Binding Goal to Lift Wind and Solar Output 53% by 2030 Jul 23, 2026 Bipartisan Bill Would Give DHS Power to Disable Dangerous AI Models Jul 23, 2026