The Indicator from Planet Money
The Indicator from Planet Money

How Iran is wasting American resources

March 19, 2026

AI Summary

5 min read

In the ongoing US-Israel conflict with Iran, a stark economic imbalance has emerged in munitions spending. Iran deploys waves of low-cost drones, forcing the US to counter with expensive, high-precision missiles. This depletes US stockpiles and highlights vulnerabilities in America's "exquisite weapons" strategy, as explained by Jerry McGinn, director of the Center for the Industrial Base at the Center for Strategic and International Studies.

Drone Costs and Iran's Strategy

Iran's Shahed 136 drones, resembling a go-kart-sized missile with wings and a propeller, cost between $4,000 and $50,000 to produce. They use GPS to fly into targets and explode. Iran manufactures them in local factories with backup sites and has exported them to Russia and Sudan. In the war, Iran has fired over 2,000 traditional missiles—mostly intercepted—but relies heavily on drone swarms to overwhelm defenses.

The goal is to exhaust US munitions. US weapons like Tomahawk missiles (millions each) and Patriot interceptors defend against these threats. In the first three days, the US expended billions in Tomahawks, draining an estimated 10% of its inventory. This forced reallocations, such as moving Patriot systems from South Korea and the Indo-Pacific to the Middle East, exacerbating long-standing supply shortages warned about by analysts like McGinn.

Continue reading the full summary in the app — free to try.

Read Full Summary →

Free • No credit card required

What you'll learn

  • 1 (00:00) **🎙️ Introduction: Jerry McGinn**
  • 2 (00:26) **Asymmetric Drone vs. Missile Warfare**
  • 3 (02:21) **Iran's Drone Production Edge**
  • 4 (03:26) **US Bias Toward Exquisite Weapons**
  • 5 (04:49) **US Munitions Depletion**
  • 6 (05:24) **US Anti-Drone Responses**
  • 7 (06:42) **Scaling Low-Cost Drone Production**

+ Full timestamped outline available in the app

Show Notes

Iran is using an affordable strategy to even the playing field in the war with the U.S. It’s using drones that cost in the thousands of dollars to combat American missiles that cost several million. Military analysts have already signaled concern about the U.S. producing enough munitions, and this isn’t helping. Today on the show, why the U.S. spends so much on munitions and what it’s learning from Iran. 

Come see Planet Money live on stage in April! 12 cities. Details and tix here: https://tix.to/pm-book-tour

Related episodes:
Are we overpaying for military equipment?
Can Just-In-Time handle a new era of war? 
A trucker, a farmer, and an entrepreneur walk into a global supply shock 
Are we overpaying for military equipment?

For sponsor-free episodes of The Indicator from Planet Money, subscribe to Planet Money+ via Apple Podcasts or at plus.npr.org. Fact-checking by Sierra Juarez. Music by Drop Electric. Find us: TikTok, Instagram, Facebook, Newsletter.  


See pcm.adswizz.com for information about our collection and use of personal data for sponsorship and to manage your podcast sponsorship preferences.

NPR Privacy Policy
The Indicator from Planet Money