Hegseth says Pentagon has plans to escalate war in Iran if necessary as fragile ceasefire holds

By Vaughn Cockayne - The Washington Times - Tuesday, May 12, 2026

Defense Secretary Pete Hegseth told lawmakers on Tuesday the Pentagon is prepared to restart combat operations against Iran if necessary, even as President Trump, Pakistani mediators and Iranian officials worked behind the scenes to find a diplomatic solution to the war.

At a hearing before the Senate Appropriations subcommittee, Mr. Hegseth said the U.S. military has contingency plans for either an increase in hostilities or a drawdown if peace succeeds.

“We have a plan to escalate, if necessary; we have a plan to retrograde if necessary. We have a plan to shift assets,” he said.

He added that the ceasefire with Iran, which was initiated in April, remains intact despite recent exchanges of fire in the Strait of Hormuz.

Mr. Hegseth’s testimony came as the U.S. and Iran trade peace proposals in an attempt to restart comprehensive negotiations to end the war.

Iran delivered its latest counteroffer to the U.S. on Monday through Pakistani mediators, which Mr. Trump called “TOTALLY UNACCEPTABLE,” in a Truth Social post the same day.

Mr. Trump followed up his comments on Tuesday, adding that he was prepared to resume strikes against Iran if the ruling regime does not agree to U.S. terms.

“We’re either going to make a deal or they’re going to be decimated,” Mr. Trump told reporters outside the White House. “So one way or the other, we win.”

Iranian state-affiliated media reported earlier this week that Iran’s demands include recognition of Iran’s control over the Strait of Hormuz, U.S. war reparations and the elimination of sanctions.

U.S. officials sent an original peace proposal to Iranian officials last week. Iranian officials categorized the deal as “unreasonable” and asserted that the demands were consistent with an inconsistent strategy.

The details of the deal have not been made public. However, reports indicate that the Trump team offered a 30-day pause on the U.S. blockade of the Strait of Hormuz, during which time negotiators could convene talks to hammer out a comprehensive peace agreement.

The U.S. has also demanded that Iran give up its own blockade over the Strait of Hormuz, dismantle its uranium enrichment program, dilute its highly enriched uranium and end its support for regional proxy groups.

Iran, for its part, has rejected calls from the U.S. to limit its enrichment program, arguing that it is for peaceful purposes and it has the right to do so under the Nuclear Non-Proliferation Treaty. However, Ebrahim Rezaei, a spokesman for the national security committee in Iran’s Parliament, said Tuesday that Iran would consider enriching to 90% purity, above the threshold for weapons grade, if it is attacked again.

While public diplomacy has stalled, Pakistan has continued to ferry communications between Washington and Tehran this week in the hopes of salvaging a deal.

U.S. and Iranian officials held one round of talks in Islamabad in April, which did not result in a deal after nearly 11 hours of negotiations.

While Pakistani mediators have seemingly earned the trust of the Trump administration and Tehran, some conservative lawmakers close to the president have voiced concerns about the country’s intentions.

“I don’t trust Pakistan as far as I can throw ’em,” Mr. Graham, South Carolina Republican, said at a hearing of the Senate Appropriations subcommittee on defense. “If they actually do have Iranian aircraft parked in Pakistan bases to protect Iranian military assets, that tells me maybe we should be looking for somebody else to mediate.”

Pakistani Foreign Minister has also brought China more directly into the peace process, discussing the “importance of continuing a durable ceasefire and ensuring normal passage through the Strait of Hormuz,” with China’s Foreign Minister Wang Yi on Tuesday.

Iran’s ambassador to China, Abdolreza Rahmani Fazli, also confirmed to Iranian media on Tuesday that China has worked to keep diplomacy alive between Tehran, Washington and Islamabad.

China’s interest in solving the Iran crisis comes ahead of Mr. Trump’s summit with Chinese President Xi Jinping in Beijing on Thursday, where diplomacy will likely dominate the conversation.

China, which purchases at least 90% of Iran’s oil exports, has been hurt significantly by Iran’s blockade of the Strait of Hormuz, through which approximately 20% of the world’s oil travels each year. The U.S. counterblockade of Iranian ports has also further cut exports to not only China but the rest of Southeast Asia.

The blockade, which Iran has maintained for nearly three months, has put extreme pressure on global energy markets and caused stocks to tank. The national average price of a gallon of gas in the U.S. stood at $4.50 on Monday, according to the AAA motor club. Prices have inched down a bit in recent days, but remain 51% higher than when the war started.

Mr. Trump said he would like to suspend the federal gas tax to alleviate costs during the war with Iran. Suspending the tax requires congressional action. Some lawmakers said they are ready to act on Mr. Trump’s wishes.

The federal gas tax is 18.4 cents per gallon of gasoline and 24.4 cents per gallon of diesel.