Iran War Cost: $25B Impact on Oil & Weapons

The ongoing conflict in Iran has now cost the United States an estimated $25 billion over the past two months, according to a Pentagon estimate released Wednesday. Defense Secretary Pete Hegseth offered no timeline for a potential end to the conflict during a contentious House Armed Services Committee hearing.

The $25 billion figure, as reported by NPR and Reuters, covers military operations undertaken since the start of the war. Hegseth defended the expenditure, stating, “What is it worth to ensure that Iran never gets a nuclear weapon?”

Cost Breakdown and Congressional Scrutiny

During the hearing, Hegseth faced questioning from Rep. Adam Smith (D-WA) regarding the long-term strategy and potential outcome of the war. Smith pointed out the initial justification for the conflict – the claim of an imminent Iranian nuclear weapon – appeared to have shifted, given Hegseth’s assertion that Iran’s nuclear facilities had been “obliterated.”

“You have to stare down this kind of enemy who’s hell-bent on getting a nuclear weapon, and get them to a point where they’re at the table, giving it up,” Hegseth said.

Defense Secretary Pete Hegseth

Smith responded, “So they haven’t broken yet,” to which Hegseth maintained that Iran had not abandoned its nuclear ambitions despite the reported destruction of its facilities.

Broader Economic Impacts

While the $25 billion represents the direct cost to the U.S. Military, the war’s economic repercussions extend far beyond immediate military spending. According to estimates compiled by think tanks and cited by CNN, the conflict is currently costing approximately $891.4 million per day, factoring in the deployment of aircraft carriers, fighter jets, bombers, and ground troops.

The conflict is also disrupting global trade, pushing up oil prices, and increasing the cost of shipping. Maersk’s chief warned that high shipping costs will impact consumers worldwide. Lindsay Koshgarian, program director of the National Priorities Project at the Institute of Policy Studies, noted the potential for astronomical costs, comparing the current situation to the nearly $3 trillion spent on the Iraq War.

“What we have is highly unpredictable and so we won’t know the cost of it until it’s over,”

Lindsay Koshgarian, program director of the National Priorities Project at the Institute of Policy Studies

A report by the Centre for Strategic and International Studies (CSIS) estimates the daily cost of military operations at around $891.4 million, based on publicly available Pentagon data.

Operation Epic Fury and Ongoing Spending

As of April 30, 2026, the U.S. War in Iran, officially designated “Operation Epic Fury,” has reached a total cost of $31.67 billion over 61 days since February 28, 2026, according to a live tracker maintained by militaryspend.org. This figure incorporates phased estimates from CSIS, the Pentagon, and Penn Wharton.

The Pentagon’s comptroller, Jay Hurst, reiterated during the congressional hearing that the expenditure was justified by the need to prevent Iran from acquiring nuclear weapons. However, the lack of a clear exit strategy and the escalating costs continue to draw scrutiny from lawmakers and analysts alike.