$29bn or $1tn: What Iran war is costing the US
WASHINGTON DC: A senior Pentagon budget official told US lawmakers on Tuesday that the war against Iran has cost $29 billion so far, exceeding the $25 billion estimate the Pentagon presented to Congress two weeks earlier.
Jay Hurst, performing the duties of Pentagon Comptroller, told a House Appropriations Committee hearing that the ongoing US military campaign against the Islamic Republic has so far cost nearly $29 billion, revising upward the earlier $25 billion figure. He said the latest assessment reflects updated operational and equipment-related expenses.
“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. That's because of updated repair and replacement of equipment costs and also just general operational costs to keep people in theatre,” Hurst said.
Hurst later told a Senate Appropriations Subcommittee hearing that the $29 billion estimate still does not include the cost of damages sustained by US military bases in the region. “We just don't have a good estimate at this time,” he added.
Independent analysts and academic researchers say the Pentagon figure may understate the full financial burden. A research paper issued by Harvard Kennedy School last week quotes war budgeting expert Linda Bilmes as saying she is certain the cost estimates for the war against Iran can reach up to $1 trillion, noting that around $2 billion is being spent per day in short-term, upfront costs.
The Harvard research states the initial days of the conflict alone cost the US at least $16 billion, significantly higher than early Pentagon estimates, owing to the rapid depletion of expensive missile systems and high operational spending. Bilmes said: “We are spending down munitions at an extraordinarily fast pace,” and added that the US fired more Patriot missiles in the first four days of the Iran conflict than it had supplied to Ukraine over the past four years.
Bilmes said the nearly $2 billion per day in short-term operational expenses includes missiles, interceptor systems, deployment of aircraft carrier strike groups, combat pay, maintenance and replacement of damaged military assets, and that actual replacement costs are significantly higher than values reflected in Pentagon inventory estimates. She gave examples of rising replacement costs for Tomahawk and Patriot missiles and noted that fuel and other supplies are being replaced at much higher current prices than those at which inventory was purchased.
CNN reported that previous internal assessments suggested the real financial cost of the conflict could be significantly higher once repair of damaged infrastructure and replacement of military assets are fully accounted for. One source cited by CNN estimated the overall cost could eventually rise to between $40 billion and $50 billion.
Bilmes pointed to medium-term costs such as repairs to damaged US military bases in the region and large-scale defence manufacturing contracts with companies including Lockheed Martin and Boeing to ramp up missile and interceptor production. She warned that long-term liabilities, including veterans’ healthcare and disability obligations under the PACT Act, could push the total much higher and said higher defence spending combined with rising borrowing costs could add significantly to the US national debt, which currently stands at around $31 trillion.
By RSS/ANI
