How Much Is the War With Iran Costing Americans? Here's the Full Breakdown
The war with Iran is continuing to cost taxpayers an exorbitant amount of money. Here are the latest estimates on how much the ongoing conflict in the Middle East is costing the Pentagon and U.S. consumers.
How Much the War with Iran Has Cost the Pentagon
Despite hope earlier in the week that an agreement had been reached between the U.S. and Iran, the two nations continued to trade strikes on Friday. It does not take a political expert or a mathematician to know that the cost of the war is rising at an alarming pace. Just how much is this war costing?
According to a new analysis by the Center for Strategic and International Studies (CSIS), the war has cost the U.S. Department of Defense (DOD) about $40 billion thus far. The estimate encompasses a wide variety of costs, including munitions, destroyed equipment, and damage incurred on military bases. However, it does not include the costs that had already been earmarked in the DOD operating budget of more than $1 trillion.
CNN is reporting that the Pentagon has submitted a request for another $80 billion in supplemental funding. Less than $20 billion of that figure is slated to be applied to the immediate needs of the war in Iran. This number does not include the cost to repair the damaged U.S. installations in the Middle East.
Mark Cancian, a senior adviser at CSIS, said that munitions have been distinguished as the largest expenditures. Cancian blames this on the fact that the DOD has leaned on long-range and technical weapons that are naturally more expensive. For instance, a Tomahawk missile comes at a cost of about $2.5 million. According to Cancian, the U.S. has used approximately 1,000 of these types of missiles.
President Donald Trump recently invoked the Defense Production Act in order to mandate that defense companies manufacture more weapons, signaling that the stockpile is running low. The DOD has borne the brunt of the cost of running a war. Other agencies that have had to chip in include the Department of Homeland Security (DHS) and Veterans Affairs.
Cost to Consumers
The most obvious cost to American consumers is coming at the gas pump. The war sent the price of gas soaring, rising from an average of less than $3 per gallon before the first strikes to nearly $5 per gallon during the peak.
The good news is that the opening of the Strait of Hormuz is helping to ease some of this strain, albeit very slowly. Experts warn that it will take time for the prices to return to the pre-war levels. The average price of a gallon of gas in the U.S. fell to below $4 for the first time since March 30 last week.
The increase in fuel has been meaningful to consumers. According to an energy cost tracker out of Brown University, the average American household has spent over $253 more at the pump than they would have paid if the war had not happened.
While the everyday American consumer is most focused on how much a gallon of gas costs, the rising cost of diesel is what concerns farmers and shippers the most. The average price of a gallon of diesel was at $3.80 before the war began. As of June 15, this price had inched up over $5. Not only does the rising cost of diesel impact shipping and agricultural interests, but it is also driving up the price of fertilizer, leading to higher food costs passed down to consumers.
The cost of war is also measured in the loss of petroleum reserves. This strategic reserve is now at its lowest level since 1983. To be fair, the reserve was also depleted during the Biden administration as a result of the years-long war between Ukraine and Russia.
As a whole, the world has lost 1.15 billion barrels of oil since the war began. Because oil is not coming out of the Middle East, countries such as Venezuela and Brazil have had to increase their production in order to meet world demand.
What the White House may be most concerned about is the political capital that the war has cost. President Trump's approval ratings slip further as the war rages on. While the president has hung on to his core group of supporters, the majority of the country disapproves of the job that he is doing, particularly as it relates to the war. A recent Fox News poll found that only 31% of registered voters approved of his handling of the economy, slightly below the 35% that are happy with how he is dealing with Iran.
Of course, these numbers do not include the most jarring cost of all. There have been 13 deaths of American troops blamed on the war, in addition to the thousands of lives lost throughout the region.
Curious for more stories that keep you informed and entertained? From the latest headlines to everyday insights, YourLifeBuzz has more to explore. Dive into what’s next.