US Spending on Iran War Hits $12 Billion

The United States has spent approximately $12 billion (1,200 crore USD) in its ongoing military engagement against Iran, according to officials at the White House. The operations began on 28 February when the US launched a joint offensive with Israel, escalating tensions across the Middle East and raising concerns over the conflict’s growing economic impact.

Speaking on CBS’s Face the Nation on Sunday, Kevin Hassett, Director of the White House National Economic Council, provided the figures. He clarified that this represents the expenditure incurred so far and is based on the most recent briefings he has received.

Initially, Hassett appeared to frame the figure as a potential total cost of the war, but was later corrected during the interview to specify that it only accounts for current spending. CBS host Margaret Brennan noted that over $5 billion was spent solely on weapons and military equipment in the first week of operations, a claim Hassett did not directly address.

Hassett downplayed fears that the conflict could pose a serious threat to the broader US economy. He argued that financial markets are already signalling expectations of a swift resolution to potential energy supply disruptions and forecasting significant declines in fuel prices.

However, his reassurance contrasts with rising concerns among American consumers as petrol prices at the pump continue to climb. Analysts point to the Strait of Hormuz—a critical chokepoint through which nearly 20% of global oil supplies pass—as a key factor. Since the onset of hostilities, Iranian threats have effectively disrupted tanker movements through this vital passage, contributing to volatility in international oil markets.

Hassett emphasised that any disruption of oil transport through the Strait of Hormuz would have a disproportionately greater impact on countries in the Gulf region, which are far more dependent on these supplies than the United States. He stated unequivocally, “What Iran is doing will not materially harm the American economy.”

The table below summarises the known financial and logistical impacts of the US military engagement in Iran:

While the conflict continues, US officials maintain that the domestic economy remains resilient, despite the Middle East tensions contributing to global energy uncertainty. Analysts, however, caution that prolonged instability in the region could trigger indirect costs not yet reflected in current estimates.