Sources indicate the Pentagon's $25 billion cost estimate for the conflict with Iran is significantly underestimated, failing to account for necessary base reconstruction. Experts suggest the actual cost could reach $40–$50 billion once damage to US military installations is factored in.
Damage Assessment and Cost Discrepancies
- Underestimation: Three sources familiar with the matter told CNN that the $25 billion figure presented by a top Pentagon official is considered a lowball estimate.
- Revised Estimate: These sources estimate the true cost, including rebuilding US military installations and replacing destroyed assets, is closer to $40–$50 billion.
Scope of Damage Reported
Iranian strikes across the Gulf region caused substantial damage to US military facilities in the initial days of the conflict. Reports detail damage to at least nine US sites across multiple nations:
- Affected Locations: Bahrain, Kuwait, Iraq, the UAE, and Qatar.
- Destroyed Assets: The damage included critical US radar systems and other equipment. Specific examples cited include:
- A radar system for an American THAAD missile battery in Jordan.
- Buildings housing similar radar systems in two locations within the UAE.
- The destruction of a US Air Force E-3 Sentry aircraft at a Saudi Arabian air base.
Official Statements and Congressional Skepticism
During a hearing before the House Armed Services Committee, Pentagon comptroller Jules “Jay” Hurst III stated that the $25 billion figure primarily covered expenditures on munitions. Secretary of Defense Pete Hegseth declined to confirm if this figure included base repair costs.
Congressional members expressed skepticism regarding the initial cost assessment. Democratic Representative Ro Khanna labeled the $25 billion estimate as "totally off" during the hearing.
- Previous Estimates: Pentagon officials had previously informed Congress that the war cost approximately $11 billion within the first six days alone.
- Future Funding Needs: The Department of Defense recently requested over $200 billion in additional military funding from Congress for the ongoing war.
Pentagon's View on Future Costs
When questioned about overseas damage, Hurst noted that the Pentagon does not possess a final figure for damage to its installations abroad, as this depends on future rebuilding decisions. He also clarified that the cost to repair these facilities is not reflected in the Department's $1.5 trillion budget request for Fiscal Year 2027, partly because the department is still assessing future construction needs. Hurst added that partner nations might contribute to reconstruction efforts, making a precise estimate difficult.
