The ongoing US military campaign against Iran has already cost Washington nearly $29 billion, exceeding the Pentagon’s earlier estimate of $25 billion, while experts warn the final financial burden could eventually climb to as much as $1 trillion.Jay Hurst, the Pentagon comptroller, informed a House Appropriations Committee hearing on Tuesday that the updated estimate reflects growing operational and equipment-related expenses linked to the conflict.
“So, at the time of testimony from [the House Armed Services Committee], it was $25 billion, but the joint staff team and the comptroller team are constantly looking at that estimate, and so now we think it’s closer to 29,” Hurst said.“That’s because of updated repair and replacement of equipment costs and also just general operational costs to keep people in theatre,” he added.
Increase in US defence spending on the Iran war
The revised estimate marks a $4 billion increase from the figure presented by the Pentagon in late April.Pentagon says damage costs not yet includedHurst later told a Senate Appropriations Subcommittee hearing that the $29 billion estimate still excludes the cost of damage sustained by US military bases in the region.“We just don’t have a good estimate at this time,” Hurst said.According to CNN, internal assessments suggest the actual financial impact could rise to between $40 billion and $50 billion once infrastructure repairs and replacement of military assets are fully accounted for.The conflict has become increasingly sensitive politically ahead of the US midterm elections, as Democrats are trying to link the war to rising living costs and inflation concerns.“For example, the Tomahawk missiles being used are valued at around $ 2 million each in inventory, but replacing them today costs $3 to $3.5 million. Patriot missiles in the inventory were valued at $1-2 million, but newer versions cost $4 to $5 million each. The same is true for fuel and other supplies, where we are drawing down inventory purchased at lower prices and replacing it at much higher current prices,” Bilmes said.Despite the increased cost, experts claim that the figure has been greatly under-reported.Expert says overall cost may eventually hit $1 trillion.According to research issued by Harvard Kennedy School last week, the cost estimates in the war against Iran can reach up to $1 trillion, noting that around $2 billion is spent a day in short-term, upfront costs, which, according to war budgeting expert Linda Bilmes, is just “the tip of the iceberg”.According to Reuters, Trump’s administration estimated the first six days of the war had cost at least $11.3 billion. As per the research, the initial days of the conflict alone cost the US at least $16 billion, significantly higher than early Pentagon estimates, due to the rapid depletion of expensive missile systems and high operational spending.
Harvard Kennedy School’s research on US military spending
The US President Donald Trump proposed a defence budget of $ 1.5 trillion for FY2027.War secretary Pete Hegseth was asked to justify the roughly 42-44% increase in defence spending compared to the 2026 budget. He described the proposal as “historic” but “fiscally responsible”, while avoiding a detailed account of where the billions go. For the US military, a decline in expenses seems like a bleak possibility. Recent developments in the Middle East indicate a resumption of the conflict. Trump’s dismissal of Iran’s proposal has further strained the fragile ceasefire. He has repeatedly threatened to resume the conflict with attacks on targets, including civilian energy infrastructure, if demands are not met. Iran plans to retaliate with strikes on US allies in the Gulf countries, potentially deepening the global fuel crisis.“I am certain we will spend one trillion dollars for the Iran war. Perhaps we have already racked up that amount,” Bilmes said