The Trump administration is struggling to justify its claims of success in the ongoing Iran War. During a heated exchange on Wednesday, Defense Secretary Pete Hegseth appeared before the House Armed Services Committee to defend the Department of Defense’s latest budget requests, but his testimony fell short of demonstrating tangible U.S. achievements in the conflict.
Massachusetts Representative Seth Moulton pressed Hegseth on the economic toll of the war on Iran, asking, "How much has Iran profited from your administration lifting the sanctions on Iran when you started this war?"
Hegseth responded, "I can tell you that Iran is financially devastated."
While Iran’s economy has suffered—over a million Iranians are unemployed, infrastructure is in ruins, and the national currency has plummeted—the regime in Tehran has taken steps to mitigate the damage. The government has increased wages, subsidized essential goods, and provided cash assistance to the poor, using its financial reserves to withstand U.S. pressure.
However, just weeks into the war, the Trump administration temporarily lifted sanctions on 140 million barrels of Iranian oil at sea, granting Iran a $14 billion financial boost. This windfall has since strengthened the regime’s ability to resist U.S. sanctions.
Moulton cited the $14 billion figure, but Hegseth was cut off mid-response.
Hegseth then argued that Iran’s options were severely limited, stating, "They’re at a point where, between the blockade and what we’ve done to them militarily, remember they don’t have a Navy so they can’t contest the blockade... They have very few options."
Moulton countered, "How many Chinese missiles can they buy with $14 billion? Does that sound like winning?"
Hegseth struggled to respond, lowering his voice as he said, "Um, they’re not—we’re ensuring that they’re not buying Chinese missiles."
MOULTON: How much has Iran profited from your administration lifting the sanctions?
HEGSETH: Iran is financially devastated right now
MOULTON: They've earned about $14 billion. Does that sound like winning?
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— Aaron Rupar (@atrupar) April 29, 2026
Hegseth’s testimony took another turn when he clashed with Ranking Member Adam Smith over the Trump administration’s claims about Iran’s nuclear capabilities. Hegseth initially asserted that U.S. officials had lied to the public last year by stating that Iran’s nuclear facilities were completely destroyed during Operation Midnight Hammer.
Smith interrupted, saying, "Woah, woah, woah, woah. You just said we had to start this war because the nuclear weapon was an imminent threat. Now you’re saying that it was completely obliterated?"
Hegseth responded, "They had not given up their nuclear ambitions."
Smith then concluded, "So Operation Midnight Hammer accomplished nothing of substance and left us at exactly the same place that we were before. So much so that we had to start a war."