Iran-Israel war LIVE: Global oil supply to plunge below demand this year on Iran war, says IEA

The Pentagon disclosed on May 12, 2026, that the cost of the U.S. military engagement in the Iran war has risen to nearly $29 billion, marking a $4 billion increase from its previous estimate. The revelation came during a budget hearing on Capitol Hill, as President Donald Trump faced scrutiny over the conflict’s financial and strategic toll. Trump stated that economic concerns for Americans are not influencing his decision-making, emphasizing that preventing Iran from acquiring nuclear weapons remains his primary objective. He reiterated efforts to negotiate an end to the conflict, though recent ceasefire discussions have stalled. Australia announced on May 13, 2026, its participation in a ‘strictly defensive’ mission led by France and Britain to safeguard maritime traffic through the Strait of Hormuz. The country will deploy a Wedgetail E-7A surveillance aircraft, already stationed in the region to counter Iranian drone threats targeting the United Arab Emirates. Meanwhile, Israel conducted airstrikes in southern Lebanon on May 12, days before scheduled talks in Washington. Lebanese authorities reported 380 deaths from Israeli attacks since an April 17 ceasefire, raising tensions ahead of diplomatic efforts. The escalating military and economic strain underscores the conflict’s widening impact, with global powers deploying assets to mitigate risks in a critical chokepoint for oil shipping. Regional instability persists as diplomatic channels remain fragile.