How much is the Iran war costing us?

The episode from The Indicator from Planet Money explores the economic costs of the US-Israel war with Iran, dubbed Operation Epic Fury, starting with initial daily estimates of $900 million from the Center for Strategic and International Studies and $1.9 billion from Pentagon officials via the New York Times. These figures cover only immediate expenses like munitions, but experts explain they represent just the beginning of much larger, ongoing burdens.

Early War Expenses

Retired Marine Colonel Mark Gantian, who helped produce the $900 million daily estimate and has done DoD budgeting, notes that many costs—such as replacing expensive bombs dropped on Iran or defending hit bases—are not in the regular military budget and must be funded urgently. He predicts daily costs will drop now that the US has air superiority, allowing cheaper bombs from airplanes instead of pricier long-range weapons.

Historical Underestimation

Linda from the Costs of War project at Brown University compares this to past wars like Iraq, where the Bush administration estimated $50 billion but the total reached about $3 trillion for Iraq and Syria. Leaders often underestimate duration and scale, a pattern seen for thousands of years, leading to far higher actual expenditures.