US-Iran war news Highlights: Iran war has cost US $37.5 billion so far, says Pete Hegseth

"The estimate we have as of today is $37.5 billion," Defense Secretary Pete Hegseth testified during a Senate Appropriations Committee hearing at which he defended a request for some $67 billion in supplemental funding for the Pentagon.

US President Donald Trump said the US has "no interest" in meeting Iran until it is ready for "meaningful" negotiations.

Trump said Iranian officials have privately expressed a desire to meet "desperately" to end the conflict because they are "getting decimated."

The remarks come as US-Iran attacks intensify following the collapse of their interim agreement aimed at ending the war.

"If we left right now, it would take Iran 20, 25 years to rebuild. Okay, and we're not finished at all...we're not leaving right now," Trump told reporters during a meeting with Lebanese President Joseph Aoun at the White House.

Shipping through the Strait of Hormuz declined as escalating US-Iran military exchanges and Houthi threats increased security concerns.

Kpler shipping data showed only four commodity vessels transited the strait on Monday, down from seven the previous day.

The four vessels included:

Two outbound tankers (one carrying petrochemicals and one empty).

Two inbound vessels (a bitumen tanker and an oil tanker).

The UK Maritime Trade Operations (UKMTO) said a tanker reported being struck by an unknown projectile while transiting the Strait of Hormuz.

Dynacom Tankers said two of its managed vessels were hit by projectiles of unknown origin off the coast of Oman on Monday.

The company also reported that a third tanker was struck by a drone at Russia's Novorossiysk CPC terminal in the Black Sea. (Reuters)

Israeli troops withdrew from parts of southern Lebanon under a US-mediated ceasefire agreement aimed at ending months of fighting with Hezbollah.

The withdrawal came as Lebanese President Joseph Aoun visited Washington for talks with US President Donald Trump, the first such meeting between the two countries' leaders in nearly 20 years.

The US activated "pilot zones" in southern Lebanon, allowing the Lebanese Army to replace Israeli forces in selected areas.

The plan seeks to ensure the Lebanese military assumes control, keeping Hezbollah away from the Israeli border.

Kuwait's foreign ministry said on X that it delivered "a protest note regarding Iran's targeting of the Kuwaiti tanker 'Kifan' on Monday evening, while it was passing through the Strait of Hormuz, resulting in injuries to several crew members".

In a statement, the military said Swinton will be posthumously awarded the Bronze Star Medal, Purple Heart and Combat Action Badge, and promoted to the rank of staff sergeant.

He enlisted in the US Army in 2017 and served with the 55th Air Defense Artillery Regiment, 108th Air Defense Artillery Brigade, based at Fort Bragg, North Carolina.

The US military identified a soldier who was killed while disarming an Iranian drone in Iraq as a 30-year-old from North Carolina.

The military said it was investigating the death of Sgt. Michael Emmanuel Swinton of Fayetteville during a controlled detonation on Sunday at an air base in Irbil in northern Iraq.

Oil prices rose more than 2% on Tuesday as escalating military exchanges between the United States and Iran heightened concerns over crude supplies.

Brent crude futures gained $1.89 (2.12%) to $91.11 per barrel by 0112 GMT.

US West Texas Intermediate (WTI) crude for August delivery rose $2.07 (2.49%) to $85.30 per barrel.

The September WTI contract climbed $2.00 (2.42%) to $84.48 per barrel.

The rally was driven by fresh US airstrikes on Iran and Iranian retaliatory attacks, raising fears of further disruptions to Middle East oil supplies.

Markets were also reacting to Yemen's Houthi rebels threatening a naval blockade of Saudi Arabia, which could disrupt shipping through the Red Sea and Bab el-Mandeb Strait, a key global oil trade route.

A very large crude carrier (VLCC) carrying around 2 million barrels of Saudi crude oil has turned back in the southern Red Sea after Yemen's Houthi rebels warned they would target ships sailing to or from Saudi ports.

The Xin Long Yang, managed by Shanghai-based Cosco Shipping, departed Saudi Arabia's Yanbu oil terminal on Monday bound for China. According to shipping data, the tanker halted before reaching the Yemeni border on Tuesday morning and later reversed course, heading north instead of continuing through the Bab el-Mandeb Strait. (Bloomberg)

Yemen's Iran-backed Houthis have warned shipping companies against loading or unloading cargo at Saudi ports, saying vessels that do so could be targeted anywhere within the group's operational range, according to an email seen by Reuters..

“Any such activity would expose the violating vessels to sanctions. Furthermore, they may be subject to targeting in any location within the operational reach of the Yemeni Armed Forces,” it said.

Qatar has told the UN that Iran must compensate it for all damage caused by recent attacks on its territory, holding Tehran fully responsible. Doha cited missile strikes and the attack on the tanker Al-Rukayyat, adding that it reserves the right to respond under Article 51 of the UN Charter.

Iran's Islamic Revolutionary Guard Corps (IRGC) claimed it struck Amazon's central data infrastructure in Bahrain with cruise missiles, saying the attack was in retaliation for the alleged US strike on a civilian facility under construction in Dar Khuyin.

Iran's Parliament Speaker Mohammad Bagher Ghalibaf has approved a law allowing parliamentary sessions to be held online or at alternate locations during emergencies if lawmakers cannot meet at the parliament building.

Bahrain said its air defences intercepted and destroyed several Iranian missiles and drones on Tuesday. The Bahrain Defense Force accused Iran of endangering civilians and urged residents to stay away from debris and unidentified objects.

Jordan says it has neutralised five incoming drones from Iran, the country’s state news agency reported on Tuesday.

Iran’s semi-official Fars news agency, citing a military source, reports that the Strait of Hormuz will remain closed as long as aggressive US actions continue.

The Lebanese army says its soldiers have begun deploying in the southern town of Zawtar al-Gharbiyeh, following the withdrawal of Israeli forces from the sector as part of a US-mediated agreement.

Iranian Interior Minister Eskandar Momeni has arrived in Islamabad for an official visit amid heightened tensions in the Gulf, Al Jazeera reported.

Iran's Revolutionary Guards said they targeted infrastructure belonging to US company Amazon in Bahrain, according to a statement published by state media on Tuesday.

There was no official confirmation from Bahrain