Iran War Could Cost US $25 Billion—or $1 Trillion: Pentagon vs Economists
Yashraj Sharma
Defense Secretary Pete Hegseth and lawmakers clashed on Capitol Hill over the true cost of the war with Iran. The Pentagon reported $25 billion in spending, but economists and Democratic lawmakers argue the real cost to the US economy could range from $630 billion to $1 trillion.
US Defense Secretary Pete Hegseth faced a heated exchange with lawmakers over the cost of the war with Iran during his first appearance on Capitol Hill since the conflict erupted three months ago.
At a House Armed Services Committee hearing on April 29, the Pentagon reported the US has spent $25 billion on the war, primarily for ammunition and equipment maintenance. However, Democratic lawmakers and numerous economists argue this figure is a significant undercount, with the actual cost to the US economy and its 330 million citizens potentially ranging from $630 billion to $1 trillion.
The hearing unfolded amid growing criticism of the Trump administration's lack of transparency in military spending. Acting Pentagon Comptroller Jay Hurst, who testified alongside Hegseth, confirmed the $25 billion estimate and pledged to provide a full cost breakdown after a thorough assessment.
Earlier in March, Pentagon officials had reported the first six days of the war cost $11.3 billion. The current $25 billion figure is also significantly lower than the $200 billion the Trump administration initially requested.
Since February 28, US-Israeli strikes on Iran have killed at least 3,375 people, according to Tehran's health ministry. The US military has confirmed 14 service members killed in combat-related incidents and over 200 wounded.
Democratic Representative Ro Khanna pressed: "Do you know how much this war will cost Americans through higher gas and food prices over the next year?" He estimated the cost as high as $631 billion, equivalent to $5,000 per household, given gasoline prices have surged 40% to $4.23 per gallon and Brent crude is trading above $120 per barrel.
Harvard economist Linda Bilmes projects the total cost of the war could reach $1 trillion. She calculates the conflict is costing about $2 billion per day in immediate expenses, not including long-term costs such as veterans' care and replenishing weapons stockpiles.
Other significant costs include repairing military bases damaged by Iranian attacks. Iranian strikes have caused damage to US bases in Kuwait, the UAE, Saudi Arabia, and Jordan. Repairs to the headquarters of the Fifth Fleet in Bahrain alone are estimated at $200 million. However, Hegseth declined to confirm that figure, stating the Pentagon is still assessing the damage.
