Estimates suggest that the Iran war might cost U.S. taxpayers over $100 billion, as reported by experts to the Daily Caller News Foundation.
One analysis claims the expenses linked to the Iran conflict could surpass that $100 billion mark, especially when factoring in damage to U.S. military facilities and equipment in the region. Conversely, Army Secretary Pete Hegseth told the Senate Appropriations Committee that the conflict has only cost about $37.5 billion since it began on February 28. This was noted during a hearing on Tuesday.
“I think it’s misleading for Pete Hegseth to give such a low figure for the war’s cost,” Steven Semler, co-founder of the Institute for Security Policy Reform, stated. “Based on my analysis of polling data back to World War II, this war has already become one of the most unpopular in history. It seems the administration is not being fully transparent about the war’s expenses.”
Semler’s latest estimate puts the cost at roughly $112.3 billion as of Tuesday, 145 days into the conflict, though he hasn’t shared a detailed breakdown.
The war escalated on July 7 following accusations from the Trump administration that Iran attacked a commercial vessel in the Strait of Hormuz, violating a previous agreement. Since then, the U.S. has conducted numerous strikes across Iran, including a series of attacks on Friday night, while Iran has retaliated against U.S. military locations in Kuwait, Bahrain, Jordan, and Iraq.
“It’s hard to take his numbers seriously, especially since he reported the war costs at under $40 billion during a hearing justifying a $72 billion funding request for Iranian military actions,” Semler remarked. “It just seems like a blatant falsehood.”
The Department of Defense has yet to provide comment on these claims.
“It’s really hard to believe.”
Some experts argue it’s not uncommon for the U.S. government to obscure the actual costs of military engagements.
“Look at the Iraq war for context. The initial estimated cost was around $200 billion, but it ballooned to $5 trillion—25 times that estimate,” said Steve Hanke, a professor of applied economics at Johns Hopkins University. “If that pattern holds, we might see the direct cost of the Iran war reach at least $1 trillion, assuming it wraps up soon.”
Money isn’t the only price paid by the U.S. in this conflict; there have been 18 U.S. military fatalities and over 500 injuries reported.
“I find Hegseth’s numbers to be completely unrealistic,” Semler asserted. “After careful examination, it’s baffling that media outlets accept them as general estimates.”
“The $37.5 billion figure seems unfounded,” noted Ben Freeman, a director at the Quincy Institute for Responsible States, stating that even the Department of Defense has acknowledged that their figures don’t account for extensive damages to military assets in the area. Independent assessments suggest that costs might be much higher.”
The White House referred back to Hegseth’s comments made during the Senate Appropriations Committee hearing.
“Congress should hold Secretary Hegseth accountable for managing the Pentagon’s budget like any other department,” said Alison McManus of American Progress. “It’s essential to remember that this war wasn’t initiated by Iran; it was started by Secretary Hegseth and President Trump, who shouldered full awareness of the resources available.”
“Congress appears mostly uninformed about Uncle Sam’s choices regarding Iran,” Hanke mentioned. “It’s hard to believe they’ll scrutinize the financing details.”
Ammunition crunch
A potential ongoing conflict with Iran not only threatens financial resources; key ammunition reserves, particularly interceptor missiles, are already strained due to previous conflicts, such as the Russo-Ukrainian war.
The report indicated that between 45% and 61% of Patriot missiles were used from February 28 to April 21, with a significant portion of the stockpile depleted during that timeframe. Although this is an outdated report, it suggests that current levels are likely even lower.
“As operations unfold, costs will keep escalating,” McManus explained. “There are ongoing expenses related to deployments, munitions, potential losses, and rising fuel costs, all stacking up on a daily basis. It’s challenging to pinpoint daily costs without specific details on operations, but estimates suggest anywhere from $500 million to $1 billion per day.”
“These expenses seem reasonable given the intense nature of current engagements,” explained Stephen Bucci from the Heritage Foundation. “The longer we engage, the more costly it becomes.”
The depletion of munitions from the Iran war could also jeopardize the U.S. military’s effectiveness in other regions, notably Asia.
“The justification for increased Pentagon budgets has often revolved around countering China,” Freeman remarked. “Yet this administration’s misguided fight with Iran is undermining our readiness against that very threat. We’re facing ammunition shortages, strained supply lines, and halted training, all of which diminish our national security.”
Freeman highlighted that these rising expenses are piling onto an already staggering national debt.
“We’re financing this conflict and bolstering the Department of Defense with borrowed money,” he stated. “This year, the U.S. could see a $2 trillion budget deficit, which only adds to our $40 trillion national debt.”
Experts note that hidden costs associated with veterans’ benefits for those injured in this conflict also contribute to the financial burden.
“Standard DoD estimates typically overlook future financial implications, including veteran care and additional interest on debt,” remarked Gabe Murphy, a policy analyst. “Furthermore, this war hasn’t been explicitly authorized by Congress, and Trump’s current actions seem unilateral.”
“With the 60-day period for legitimate hostilities long expired, Congress should be demanding a concrete strategy to conclude this conflict,” Murphy suggested. “The Pentagon has short-term funds available, and once hostilities cease, it could request further financing to replenish its stocks.”
Both legislative chambers passed the Iran War Powers Resolution in June and July, with a second House bill narrowly approved while a Senate effort failed.
“The prolongation of this conflict will only lead to escalating costs,” Freeman concluded. “If this continues into the end of the year and escalates further, it’s easy to envision costs reaching into the hundreds of billions.”
