Story perspectives

Iran Drones Shut Straits, Fueling $37.5B US War Costs

7/24/2026

Summary

Story summary

The Strait of Hormuz and the Bab el-Mandeb are largely closed, prompting energy-crunch warnings from ExxonMobil and Chevron.
Washington has spent $37.5 billion on the war, a figure the Pentagon says likely understates the true cost.
Iran’s inexpensive drones give it psychological leverage over shipping firms and insurers.
Analysts say the United States must negotiate with Iran or quickly develop a credible deterrent to stop further maritime disruption.

History

Historical Context

The 1980s “tanker war” saw Iraq and Iran targeting merchant ships, prompting the United States to launch Operation Earnest Will in March 1987 and protect more than 200 re-flagged Kuwaiti tankers. Lloyd’s later recorded 546 commercial vessels damaged. Decades later Iran’s low-cost drones again menace the Strait of Hormuz, forcing ExxonMobil, Chevron and insurers to warn of a renewed energy crunch.

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Story summary

The Strait of Hormuz and the Bab el-Mandeb are largely closed, prompting energy-crunch warnings from ExxonMobil and Chevron.
Washington has spent $37.5 billion on the war, a figure the Pentagon says likely understates the true cost.
Iran’s inexpensive drones give it psychological leverage over shipping firms and insurers.
Analysts say the United States must negotiate with Iran or quickly develop a credible deterrent to stop further maritime disruption.

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