Strait of Hormuz shut until Tehran's conditions met, Ghalibaf says

The war with Iran has cost the United States at least $38 billion through the end of July and is expected to further push inflation higher for American households, according to a nonpartisan Congressional Budget Office (CBO) assessment released Tuesday.

The CBO also warned that depleted weapon stocks could take a half decade or longer to rebuild, crippling the Pentagon’s ability to respond to another major conflict.

The assessment describes the financial and military consequences that will persist beyond the fighting, leaving the Pentagon with fewer weapons available for another major conflict while skyrocketing energy prices put pressure on household budgets.

The report notes that the Pentagon did not cooperate with the analysis or provide information requested by the Congressional Budget Office. The Pentagon did not immediately respond to ABC News' request for comment on the report.

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-ABC News' Steven Beynon and Lauren Peller

Secretary of State Marco Rubio spoke by phone Tuesday with his Omani counterpart, Foreign Minister Sayyid Badr al-Busaidi, the State Department said.

"The Secretary acknowledged Oman’s important role in deescalation in the region and condemned recent Iranian attacks on commercial ships and countries in the region," State Department spokesperson Tommy Pigott said in a readout of their conversation.

"He reiterated the United States’ commitment to ensuring that Iran never acquires a nuclear weapon and to freedom of navigation through the Strait of Hormuz," Pigott continued. "He expressed support for deepening ties between Oman and the United States."

Oman's foreign ministry said in a statement that the two leaders, "exchanged views on efforts aimed at de-escalating tensions, containing their repercussions, and creating the conditions necessary to continue diplomatic efforts and address outstanding issues in a manner that supports the security and stability of the region."

-ABC News' Shannon Kingston and William Gretsky

Qatar warned Tuesday that the closure of the Bab el-Mandeb Strait would have “catastrophic” consequences for global trade, amid the ongoing blockade of the Strait of Hormuz and recent advances by Ansarallah along Yemen’s Red Sea coast.

"The world is suffering enough with the closure of the Strait of Hormuz, so we cannot also afford to add the Bab el-Mandeb into that equation," Qatari Foreign Ministry official Ibrahim al-Hashmi told reporters.

He said closing the southern entrance to the Red Sea would be "catastrophic for the entire world," adding that Qatar is pushing for "diplomacy, dialogue" as the regional situation continues to escalate.

-ABC News' Desiree Adib

Saudi Arabia's General Directorate of Civil Defense on Tuesday issued a rare public warning of a "potential danger" for the holy city of Mecca, as well as for the Jeddah and Taif regions.

The alerts instructed motorists to stay away from bridges, urged residents to avoid gatherings and to stay away from high-rise buildings.

The alerts lasted for around an hour, after which time the directorate said the danger to all three areas had passed. The warnings came amid intensified cross-border attacks between Saudi forces and the Iran-backed Houthi rebels in Yemen.

-ABC News' Lama Hasan and Joe Simonetti