US–Iran war LIVE: Oil surges past $123 as Strait of Hormuz standoff drags on; Donald Trump speaks with Vladimir Putin amid stalled talks

The Donald Trump administration has sought a massive $1.5 trillion defence budget from Congress as the cost of the US war with Iran continues to escalate, drawing scrutiny from lawmakers.

During his first appearance on Capitol Hill since the February 28 US-Israeli strikes, Defence Secretary Pete Hegseth described domestic political opposition as a key challenge, calling dissenting lawmakers the “biggest adversary.” The war has already cost an estimated $25 billion in munitions.

Peace talks falter

Efforts to revive diplomacy between the US and Iran remain uncertain. While Trump has claimed negotiations have progressed, his recent warnings urging Tehran to “get smart” suggest tensions persist. Talks have shifted to indirect channels, with Pakistan expected to receive a revised Iranian proposal.

Trump-Putin call

Trump also held a 90-minute phone call with Vladimir Putin, discussing both the Iran conflict and the war in Ukraine. According to reports, Putin offered assistance on handling Iran’s enriched uranium stockpiles, though Trump indicated his priority remains ending the Ukraine war first.

Strait of Hormuz tensions

The US has maintained a blockade of Iranian ports around the Strait of Hormuz, a critical artery for global oil shipments. Iran has warned of “swift action” if US forces escalate their presence, raising fears of broader disruption to energy supplies.

Rising human toll

The humanitarian impact of the conflict is worsening. A US strike involving Tomahawk missiles that reportedly hit a girls’ school—killing around 170 people—is under investigation. Overall casualties have surpassed 3,500, including hundreds of children, according to the Human Rights Activists News Agency.

Israel-Lebanon front

Meanwhile, Israel has continued strikes in Lebanon despite a US-brokered ceasefire. Israeli Foreign Minister Gideon Saar said the operations are aimed at security concerns rather than territorial expansion.