Iran War Costs U.S. $11 Billion in First Six Days

The U.S. military has announced plans to rely more heavily on Joint Direct Attack Munition bombs, which are significantly cheaper.

Gas futures are down a little today on news of possible closure for the Iran war.

Quick overview

  • The U.S.-Iran war has cost over $11.3 billion in its first six days, according to Pentagon officials.
  • This estimate does not account for additional operational costs, leading lawmakers to anticipate a significant increase in total expenses.
  • The Center for Strategic and International Studies reported that the first 100 hours of the operation cost approximately $3.7 billion.
  • The U.S. military plans to use cheaper munitions moving forward, despite calls from Senator Mitch McConnell for increased ammunition production spending.

The war involving the United States and Iran cost more than $11.3 billion in its first six days, according to officials from the United States Department of Defense, commonly known as the Pentagon.

The US military may be ending the fight in Iran soon, and investors are hopeful.
The US military may be ending the fight in Iran soon, and investors are hopeful.

Sources close to United States Congress said the estimate was shared with lawmakers during a closed-door briefing at the United States Capitol on Tuesday. Three people familiar with the meeting confirmed the figure.

However, the estimate does not include several operational costs, such as the buildup of military equipment and personnel before the first strikes. Lawmakers therefore expect the total cost to rise significantly as the conflict continues.

Other estimates of the war’s cost

While the Pentagon’s figure is considered the most official estimate so far, other institutions have produced their own calculations.

The Center for Strategic and International Studies estimated that the first 100 hours of the operation cost about $3.7 billion, or roughly $891.4 million per day. The think tank expects the daily cost to decline over time as the U.S. shifts to less expensive munitions and as Iranian drone and missile attacks decrease.

In line with that approach, the U.S. military has announced plans to rely more heavily on Joint Direct Attack Munition bombs, which are significantly cheaper than some of the precision weapons used at the start of the conflict.

This strategy contrasts with the position of Mitch McConnell, the senator from Kentucky who chairs the Senate subcommittee responsible for Pentagon funding and has repeatedly urged the U.S. government to increase spending on ammunition production.

Meanwhile, reports by The New York Times and The Washington Post cited defense officials telling Congress that the U.S. military spent $5.6 billion on munitions in just the first two days of the war.

ABOUT THE AUTHOR See More
Ignacio Teson
Economist and Financial Analyst
Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.

Related Articles

HFM

HFM rest

Pu Prime

XM

Best Forex Brokers