U.S. Hegseth on Iran: We will keep advancing

The U.S. Department of War has emphasized continued military operations against Iran under Operation Epic Fury, with Secretary of War Pete Hegseth and Chairman of the Joint Chiefs of Staff Gen. Dan Caine stating the campaign remains in its early stages. As of March 4, 2026, U.S. and Israeli forces reported an 86% reduction in Iranian ballistic missile launches since the conflict began on February 28, alongside a 73% decline in one-way attack drone usage. Hegseth asserted that the U.S. and Israel are "poised to have complete control of Iranian airspace within the next few days," enabling sustained strikes on Iran’s military infrastructure and leadership.

The conflict has already disrupted global energy markets, with oil shipments through the Strait of Hormuz—accounting for 20% of global oil flows—stalling since the war began. U.S. gas prices have risen by approximately 50 cents per gallon, reflecting heightened geopolitical risks. Caine noted that over 20 Iranian naval vessels have been destroyed, including a combatant ship sunk by a U.S. submarine in the Indian Ocean, marking the first such action since 1945.

Hegseth reiterated that the operation’s objectives include preventing Iran from reconstituting its military capabilities and achieving "unconditional surrender," though he declined to specify terms. He also acknowledged ongoing investigations into civilian casualties, including a reported strike on a school in southern Iran. With over 50,000 U.S. military personnel deployed and no immediate end to the conflict, financial markets may face prolonged volatility due to energy disruptions and potential escalation in military expenditures. The administration has not indicated plans to adjust fiscal policies to address rising operational costs or economic ripple effects.