{"id":63454,"date":"2026-06-20T00:08:18","date_gmt":"2026-06-20T04:08:18","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/pentagon-seeks-80b-for-iran-war-costs-as-markets-pivot-to-hawkish-fed-outlook\/63454\/"},"modified":"2026-06-20T00:08:18","modified_gmt":"2026-06-20T04:08:18","slug":"pentagon-seeks-80b-for-iran-war-costs-as-markets-pivot-to-hawkish-fed-outlook","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/pentagon-seeks-80b-for-iran-war-costs-as-markets-pivot-to-hawkish-fed-outlook\/63454\/","title":{"rendered":"Pentagon Seeks $80B for Iran War Costs as Markets Pivot to Hawkish Fed Outlook"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/pentagon-seeks-80b-for-iran-war-costs-as-markets-pivot-to-hawkish-fed-outlook\/63454\/#Key_Takeaways\" >Key Takeaways<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/pentagon-seeks-80b-for-iran-war-costs-as-markets-pivot-to-hawkish-fed-outlook\/63454\/#Pentagon_Requests_80_Billion_for_Post-War_Recovery\" >Pentagon Requests $80 Billion for Post-War Recovery<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/pentagon-seeks-80b-for-iran-war-costs-as-markets-pivot-to-hawkish-fed-outlook\/63454\/#Markets_Brace_for_Potential_Fed_Rate_Hike\" >Markets Brace for Potential Fed Rate Hike<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/pentagon-seeks-80b-for-iran-war-costs-as-markets-pivot-to-hawkish-fed-outlook\/63454\/#Gabbard_Declassifies_COVID_Files_on_Final_Day\" >Gabbard Declassifies COVID Files on Final Day<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/pentagon-seeks-80b-for-iran-war-costs-as-markets-pivot-to-hawkish-fed-outlook\/63454\/#Khamenei_Backs_US_Deal_with_Reservations\" >Khamenei Backs U.S. Deal with Reservations<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/pentagon-seeks-80b-for-iran-war-costs-as-markets-pivot-to-hawkish-fed-outlook\/63454\/#Major_Recall_of_Teething_Toys_on_Amazon\" >Major Recall of Teething Toys on Amazon<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Key_Takeaways\"><\/span>Key Takeaways<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><strong>The Pentagon has requested $80 billion<\/strong> in emergency supplemental funding to cover the costs of the recent war with Iran and replenish depleted munition stockpiles.<\/li>\n<li><strong>Federal Reserve expectations have shifted dramatically<\/strong>, with markets now pricing in a <strong>38% chance of a rate hike<\/strong> and effectively &quot;pricing out&quot; any possibility of a July rate cut.<\/li>\n<li><strong>Outgoing DNI Tulsi Gabbard declassified explosive COVID-era documents<\/strong> on her final day, alleging that Dr. Anthony Fauci influenced intelligence assessments regarding the virus&#39;s origins.<\/li>\n<li><strong>Iran\u2019s Supreme Leader Mojtaba Khamenei gave a conditional blessing<\/strong> to the U.S.-Iran memorandum of understanding, despite stating he opposed the deal &quot;in principle.&quot;<\/li>\n<li><strong>Over 70,000 teething toys sold on Amazon (<a href=\"\/stock\/AMZN\">AMZN<\/a>) have been recalled<\/strong> by the CPSC following dozens of choking incidents involving silicone strings.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Pentagon_Requests_80_Billion_for_Post-War_Recovery\"><\/span>Pentagon Requests $80 Billion for Post-War Recovery<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The <strong>U.S. Department of Defense<\/strong> has informed congressional leaders that it requires approximately <strong>$80 billion<\/strong> to address a massive financial shortfall following the conclusion of major combat operations in Iran. Deputy Defense Secretary <strong>Stephen Feinberg<\/strong> reportedly warned lawmakers that without this emergency supplemental funding, the military could deplete operational funds as early as this summer.<\/p>\n<p>The request, which was scaled down from an initial <strong>$200 billion<\/strong> proposal due to bipartisan resistance, is intended to cover the costs of <strong>Operation Epic Fury<\/strong>, replenish munition stockpiles, and fund troop deployments along the southern border. Pentagon officials noted that the conflict, which began in late February, has already incurred direct costs between <strong>$25 billion and $29 billion<\/strong>.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Markets_Brace_for_Potential_Fed_Rate_Hike\"><\/span>Markets Brace for Potential Fed Rate Hike<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Financial markets have undergone a hawkish recalibration following the <strong>Federal Reserve&#39;s<\/strong> June meeting, where the benchmark rate was held steady at <strong>3.50%-3.75%<\/strong>. Investors have completely abandoned hopes for a July rate cut, with federal funds futures now indicating a <strong>38% probability of a rate increase<\/strong> later this year.<\/p>\n<p>The shift in sentiment follows a surprisingly hawkish <strong>Summary of Economic Projections (SEP)<\/strong>, in which nine of the 18 participating officials signaled at least one more hike by year-end. <em>Persistent inflation pressures, driven by energy shocks from the Middle East conflict and a firm labor market, have forced the Fed to prioritize price stability over easing.<\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Gabbard_Declassifies_COVID_Files_on_Final_Day\"><\/span>Gabbard Declassifies COVID Files on Final Day<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In a dramatic final act as <strong>Director of National Intelligence (DNI)<\/strong>, <strong>Tulsi Gabbard<\/strong> released a wave of declassified documents and whistleblower reports concerning the origins of COVID-19. The files allege that <strong>Dr. Anthony Fauci<\/strong> funded gain-of-function research at the <strong>Wuhan Institute of Virology<\/strong> and later worked to shape the intelligence community&#39;s narrative to obscure a potential lab leak.<\/p>\n<p>Gabbard claimed that the documents show Fauci interacted with intelligence officials to influence assessments as the debate over the virus&#39;s origins intensified in 2021. <em>The release marks a significant escalation in the administration&#39;s efforts to hold health officials accountable, with Gabbard citing a need for &quot;transparency, truth, and accountability&quot; for the American people.<\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Khamenei_Backs_US_Deal_with_Reservations\"><\/span>Khamenei Backs U.S. Deal with Reservations<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Iran\u2019s Supreme Leader <strong>Ayatollah Mojtaba Khamenei<\/strong> has officially endorsed the memorandum of understanding (MoU) signed between <strong>President Donald Trump<\/strong> and Iranian President <strong>Masoud Pezeshkian<\/strong>. While Khamenei stated he held a &quot;different view in principle,&quot; he granted permission for the deal after receiving assurances that Iran&#39;s national rights and the &quot;Resistance Front&quot; would be protected.<\/p>\n<p>The endorsement comes as the <strong>U.S. lifted its blockade of Iranian ports<\/strong>, allowing oil tankers to resume movement through the <strong>Strait of Hormuz<\/strong>. Despite the Supreme Leader&#39;s blessing, he warned that future face-to-face negotiations do not imply an acceptance of &quot;American greed&quot; or &quot;excessive demands.&quot;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Major_Recall_of_Teething_Toys_on_Amazon\"><\/span>Major Recall of Teething Toys on Amazon<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The <strong>Consumer Product Safety Commission (CPSC)<\/strong> has issued an immediate recall for more than <strong>70,000 teething toys<\/strong> sold exclusively on <strong>Amazon (<a href=\"\/stock\/AMZN\">AMZN<\/a>)<\/strong>. The recall affects <strong>GOPO TOYS<\/strong> and <strong>Yetonamr<\/strong> pull-string teething toys after reports surfaced that the silicone strings can detach or lodge in a child&#39;s throat.<\/p>\n<p>The CPSC is aware of at least <strong>32 choking incidents<\/strong> related to the products, which were sold between <strong>August 2023 and March 2026<\/strong>. Parents are urged to stop using the toys immediately and contact the manufacturers for a full refund, as the items violate mandatory safety standards for toy dimensions.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways The Pentagon has requested $80 billion in emergency supplemental funding to cover the costs of the recent war 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