The U.S.’s military campaign against Iran, Operation Epic Fury, could cost American taxpayers between $40 billion and $210 billion, according to Kent Smetters, director of the Penn Wharton Budget Model (PWBM).
Smetters provided a range of estimates, with the smallest direct budgetary cost standing at $40 billion, which could escalate to $95 billion. He suggested that a more probable figure would be around $65 billion, accounting for direct military operations and the replacement of equipment and supplies. This figure could increase if the conflict extends beyond two months, Smetters told Fortune.
In addition to direct military spending, Smetters estimated an extra $115 billion in economic losses resulting from trade disruptions, volatility in energy markets, and financial strains commonly associated with prolonged conflicts in the Middle East.
That being said, Smetters cautioned that typical estimates of war costs often ignore what might have happened otherwise, noting that if Iran had actually developed a nuclear weapon, spending on the military and rebuilding U.S. cities could have been much higher.
Lawmakers Question War Spending
The projected costs of Operation Epic Fury have sparked a debate over U.S. spending priorities. Before the operation, the Pentagon’s pre-strike military buildup had reportedly cost taxpayers around $630 million, the Wall Street Journal reported on Saturday, citing Elaine McCusker, a former senior budget official at the Pentagon.
House Democratic leader Hakeem Jeffries criticized the Trump administration for prioritizing military escalation in the Middle East over domestic economic concerns.
Similarly, Senator Chris Murphy argued that the financial toll of a potential conflict with Iran could exceed the cost of extending Affordable Care Act subsidy support.
Meanwhile, President Donald Trump signaled that the heaviest phase of the campaign against Iran still lies ahead, hinting at a prolonged conflict. This suggests that the financial implications of the operation could potentially escalate beyond current estimates.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by a Benzinga editor.
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