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How Much Is the Iran War Costing You?

  • 20 hours ago
  • 3 min read
A bright, fiery missile erupts from HNLMS De Ruyter. 

It launches a Tomahawk missile off the coast of Norfolk, VA (11 March 2025)
Ministerie van Defensie, CC BY-SA 4.0, via Wikimedia Commons

Historic Tolls - Costs of the Second Iraq War

$3 trillion.


That is what the Iraq War ultimately cost. 


Not governments. Not abstract budgets.


Americans. 


That’s roughly $15,000 per taxpayer. paid slowly through debt, inflation, and decades of interest.


And these sums don’t include the 32,000 wounded or the 4400 brave people killed. 


Many of those who returned could not return to normal life—leaving the workforce, requiring lifelong care, and carrying costs that never appear cleanly on a balance sheet.


What the Iran War Has Cost So Far

The opening phases alone cost roughly $3.7 billion. 


In the first hundred hours, GBU-57s cracked open hard targets, Tomahawks crashed into buildings, and AGM-158 slipped into areas out of reach. 


GBU-57s cost $10 million per bomb, Tomahawks $1.5-2 million, and AGMs or JASSMs cost about $1.2 million. 


By day 12, total costs had already reached ~$ 16.5 billion. 


However, this wasn’t all offensive. 


Much of the cost comes from defence. 


Defending regional allies from retaliatory strike is often more expensive than attack. 


Why Defence Is Even More Expensive

It's harder to hit a moving target than a building or tunnel complex. 


Especially if that object is travelling at 15,000 kilometres per hour. 


To intercept, you need extremely good detection, and that requires very powerful radar. Which is like a beacon for enemies. 


A pulse that can be detected from miles away. 


So, in order to defend, you must be vulnerable, which requires more equipment to protect your assets. 


Furthermore, it requires very expensive and manoeuvrable missiles. Or at least that is what the Americans are using. 


The Patriot costs $3m per missile, whilst the THAAD costs at least $8m per launch. That’s not including the highly specialist people who have to operate these batteries. 


A night sky with brilliant orange streaks, attacking missiles in the sky over Tel Aviv. 

Patriot missiles being launched to intercept an Iraqi Scud missile over the city of Tel Aviv.
Government Press Office (Israel), CC BY-SA 3.0, via Wikimedia Commons

When you include training and logistics, these numbers massively inflate. 


What Iran Is Spending

Your average shaheed costs about $20k. 


Again, it's much more when you include the training and logistics. Furthermore, you have to encourage people to fire them, which is all the harder if they are aware of the rapid reprisals the US forces can deliver. 


And yet, Iran still manages to launch both drone swarms and ballistic missiles. 


Their ballistic missiles are the Shahab-3, Sejil-2, Korramshahr-4, and the feared Fattah-2. 


Iran's ballistic missile costs range from $750k (Shahab) to $3.5m (Fattah-2) on the high end. 


The more expensive Fattah-2 has a manoeuvrable reentry vehicle (MaRV) designed to evade THAAD and even the shorter-range Arrow. 


These hypersonic glide vehicles travel at 18,000 km/h and can hit targets as far as 1,500 km away. 


Qatar reported that a Fattah-2, in conjunction with drones, struck a US radar (AN/FPS-132) stationed in Jordan. 


An estimated 800 million in damages. 


This forced the Americans to bring in another one from Korea, something a powerful adversary like China no doubt smiles upon. 


Using this claw-out-the-enemy-eyes strategy, Iran spends on average $5M a night. Whereas the Americans are spending easily $200M.


$20K drones provoke a $3M response. 


Ignoring it costs more. 


Why Not Use Cheaper Interceptors Like Short Range Air Defence (SHORAD)?

We must understand the scope of conflict. The US is trying to defend a massive area. Cities, airports, and straights. 


Short Range Air Defence is relatively cost-effective, but its name tells us exactly why it’s less popular than THAADs and Patriots. It simply can’t cover as much ground. 


An M-SHORAD Stryker, assigned to the 5th Battalion, 4th Air Defence Artillery Defence, targets its drone and launches a Stinger missile on March 09, 2022, near Rutja, Estonia. During the demonstration, soldiers took turns utilising the tracking system and gaining experience locating the target.
U.S. Army 118MPAD by Sgt. Ryan Gay, Public domain, via Wikimedia Commons

Furthermore, missile defence is best in layers; ideally, you want to intercept with your first layer. 


SHORAD is the last line of defence. In line with lasers, microwaves, and jammers. This line is also less likely to intercept hypersonic threats.


Hypersonic glide vehicles fly too high, fast, and erratically. 


And lasers aren’t prevalent due to their inability to work in dusty, rainy, or smoky conditions. 


Conditions prevalent in war. 


So could the US use more SHORAD to intercept missiles? They absolutely could, but it’s riskier. 


And contemporary war, if anything, is risk aversion. 


Who is Winning the War in Iran?

This is an impossible question because the American objective is unclear.


If the goal is regime change, there is an arduous road ahead.

If the goal is to slow nuclear progress, then perhaps they’ve already won. 


But without a clear endgame, costs tend to expand.


As the war continues, weapons are used, stockpiles shrink, and demand increases.


Not because of conspiracy, but because that is how the system works.


So the question becomes simple.


If the costs keep rising, but the objective remains undefined, what does winning actually mean? 


Who is winning then? 


And who is left with the bill?  














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