President Donald Trump has asked Congress for billions of dollars to fund a potential military campaign against Iran, a move that follows escalating tensions with Republican lawmakers. The request, submitted to the House Appropriations Committee late on Tuesday, seeks $15bn in emergency funding for the Pentagon, including missile defence systems and naval deployments in the Persian Gulf. The development has triggered a surge in UK defence stocks, with BAE Systems and Rolls-Royce among the largest gainers.
The White House's formal submission marks a significant escalation in the administration's posture towards Tehran. It comes after weeks of internal disagreement among Republicans over the strategy, with some senior party figures cautioning against open conflict. The request bypasses the usual congressional approval process, citing national security imperatives. Democratic leaders have already signalled opposition, calling the move a dangerous provocation.
UK defence shares rose sharply on Wednesday morning. BAE Systems climbed 4.2 per cent, while Rolls-Royce gained 3.8 per cent. The defence sector has seen renewed investor interest amid fears of a broader Middle Eastern conflict. Analysts at RBC Capital Markets noted that the request, if approved, would represent the first major increase in US defence spending since 2020.
The funding proposal includes $5bn for missile defence systems to protect US allies in the region, $4bn for additional warship deployments, and $3bn for intelligence operations. The remainder would cover logistics and support for potential ground operations. The Pentagon has declined to comment on operational specifics.
Diplomatic channels remain open, but the request signals a hardening of the administration's position. European allies have been privately briefed on the proposal, with some expressing concern. A senior EU diplomat described the development as deeply worrying, warning that it could derail ongoing nuclear negotiations.
The request is expected to face fierce opposition in Congress, where both parties remain divided. Republican Senator Mike Lee, a frequent critic of foreign interventions, condemned the move as a dangerous overreach. Speaker Kevin McCarthy has not yet commented publicly, but aides suggest the request will face scrutiny.
Trump's decision to sideline the usual budget process has raised constitutional questions. The White House insists the funds are necessary to prevent a wider conflict, but critics argue the move risks further entrenching US military commitments in the region. The Pentagon has emphasised that the funds would be spent only with congressional authorisation.
UK defence stocks have historically benefited from US military spending, but the current surge reflects a broader market reassessment of geopolitical risk. Investors are now pricing in a higher probability of conflict, with defence contractors seen as primary beneficiaries. The FTSE 250 defence index rose 2.1 per cent.
The situation remains fluid. Congress is expected to begin hearings next week, with the White House likely to face tough questions. For now, the path to funding remains uncertain, but the signal sent to Tehran is unmistakable.
