{"id":61851,"date":"2026-05-12T10:38:20","date_gmt":"2026-05-12T14:38:20","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/iran-war-costs-surge-to-29-billion-as-trump-signals-escalation-markets-retreat\/61851\/"},"modified":"2026-05-12T10:38:20","modified_gmt":"2026-05-12T14:38:20","slug":"iran-war-costs-surge-to-29-billion-as-trump-signals-escalation-markets-retreat","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/iran-war-costs-surge-to-29-billion-as-trump-signals-escalation-markets-retreat\/61851\/","title":{"rendered":"Iran War Costs Surge to $29 Billion as Trump Signals Escalation; Markets Retreat"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Pentagon cost estimates for the war with Iran have risen to $29 billion<\/strong>, driven by rising equipment repair, replacement, and theater operational costs.<\/li>\n<li><strong>The <a href=\"https:\/\/stockmarketwatch.com\/indices\/sp500\/today\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&amp;P 500<\/a> and Nasdaq 100 fell 0.5% and 1% respectively<\/strong> as geopolitical uncertainty and potential military escalations weighed on investor sentiment.<\/li>\n<li><strong>Nvidia (<a href=\"\/stock\/NVDA\">NVDA<\/a>) defied the broader market slump to hit a record high<\/strong>, gaining 1.8% despite the tech-heavy Nasdaq&#39;s decline.<\/li>\n<li><strong>Copper prices surged to $14,000 per ton on the LME<\/strong>, nearing all-time records as supply concerns and industrial demand remain high.<\/li>\n<li><strong>UK Prime Minister Keir Starmer faces a leadership crisis<\/strong> with expected ministerial resignations, despite a public show of support from over 100 backbenchers.<\/li>\n<\/ul>\n<h2>Geopolitical Tensions and Rising War Costs<\/h2>\n<p>Acting Pentagon comptroller <strong>Jay Hurst<\/strong> informed Congress that the estimated cost of the war with Iran has climbed to <strong>$29 billion<\/strong>, a significant increase from the <strong>$25 billion<\/strong> estimate provided just two weeks ago. The revised figure includes <strong>$24 billion for munitions<\/strong> and <strong>$5 billion for equipment replacement<\/strong>, though officials noted it does not yet account for repairing regional base damage.<\/p>\n<p>President <strong>Donald Trump<\/strong> is reportedly preparing to return to <strong>major military operations<\/strong> against Iran, according to CNN sources. While a final decision is unlikely before the President&#39;s scheduled visit to <strong>China<\/strong>, Trump reiterated his stance that Iran <strong>&quot;cannot allow them to possess a nuclear weapon&quot;<\/strong> because of the risk of deployment.<\/p>\n<h2>Market Volatility and Commodity Surges<\/h2>\n<p>Broad market indices retreated as the threat of escalation grew, with the <strong>Nasdaq 100<\/strong> extending its decline to <strong>1%<\/strong>. However, Nvidia (<a href=\"\/stock\/NVDA\">NVDA<\/a>) continued its upward trajectory, hitting a <strong>record high<\/strong> and trading up <strong>1.8%<\/strong>. <em>Analysts suggest the divergence highlights the continued dominance of AI-related growth over macro-geopolitical fears.<\/em><\/p>\n<p>In the commodities sector, <strong>copper prices<\/strong> reached <strong>$14,000 per ton<\/strong> on the London Metal Exchange (LME), approaching historic highs. In the energy market, <strong>Russia<\/strong> projected its 2026 oil production to remain flat at approximately <strong>511 million tons<\/strong>, while President Trump noted that tankers are currently loading oil in <strong>Texas and Louisiana<\/strong> for export.<\/p>\n<h2>UK Political Crisis and Global Corporate News<\/h2>\n<p>The UK government is embroiled in internal turmoil as <strong>Keir Starmer<\/strong> faces a potential leadership challenge. While over <strong>100 MPs<\/strong> signed a statement backing the Prime Minister to avoid a contest, at least two more <strong>ministerial resignations<\/strong> are expected. <em>The instability comes as rumors circulate regarding Andy Burnham\u2019s potential return to Westminster.<\/em><\/p>\n<p>In the healthcare sector, Novo Nordisk (<a href=\"\/stock\/NVO\">NVO<\/a>) released data showing that high-dose <strong>Wegovy<\/strong> helped patients lose nearly <strong>28% of their body weight<\/strong>, a result that could further solidify its lead in the obesity drug market. Meanwhile, JPMorgan (<a href=\"\/stock\/JPM\">JPM<\/a>) CEO <strong>Jamie Dimon<\/strong> affirmed the bank\u2019s commitment to its new London headquarters, provided the UK does not become <strong>&quot;hostile&quot;<\/strong> to the financial sector.<\/p>\n<h2>Infrastructure, Safety, and Tech Risks<\/h2>\n<p>The <strong>U.S. Justice Department<\/strong> has filed criminal charges against a <strong>Singapore-based shipping company<\/strong> over safety failures related to the deadly <strong>Baltimore Key Bridge collapse<\/strong>. In the shipping industry, <strong>Maersk<\/strong> confirmed it is still avoiding the <strong>Strait of Hormuz<\/strong> due to the ongoing conflict, impacting global logistics and transit times.<\/p>\n<p>In the technology space, reports indicate that <strong>AI is accelerating crypto hacks<\/strong> by allowing malicious actors to scan code bases more efficiently. The current rate of attacks is tracking at <strong>more than one hack per day<\/strong>, primarily targeting smaller protocols but increasingly threatening larger platforms. Furthermore, <strong>New York City Mayor Mamdani<\/strong> has scrapped a planned property tax hike in a revised budget, providing some relief to local real estate markets.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Pentagon cost estimates for the war with Iran have risen to $29 billion, driven by rising equipment repair, 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