US Spending on Iran Conflict Hits $12 Billion

The United States has spent approximately $12 billion (1,200 crore USD) on military operations in Iran since late February, according to a senior White House official. The expenditure follows a joint operation with Israel on 28 February, which marked the beginning of heightened military activity in the region. Concerns are growing in Washington over the conflict’s escalating economic impact across the Middle East.

Kevin Hassett, Director of the White House National Economic Council, revealed the figures during an appearance on CBS’s Face the Nation on Sunday. He clarified that the numbers reflect the latest briefings provided to him and should not be interpreted as the projected total cost of the conflict.

At the start of the interview, Hassett appeared to suggest that the figure might represent the total expected cost of the war, but he was later prompted to correct the record. During the discussion, CBS host Margaret Brennan noted that over $5 billion was reportedly spent on weaponry alone in the first week of operations. Hassett did not provide a direct response to this claim.

Despite the significant expenditure, Hassett downplayed concerns that the conflict could pose a substantial threat to the US economy. He stated, “Financial markets are already anticipating a rapid resolution of potential energy supply disruptions, as well as a notable decline in fuel prices in the near term.”

However, Hassett’s assurances appear at odds with the rising fuel costs experienced by American consumers at petrol stations across the country. Globally, around 20 per cent of crude oil passes through the Strait of Hormuz, which has become increasingly tense due to Iran’s threats. Since the start of hostilities, tanker traffic through this strategic waterway has effectively come to a halt, introducing volatility into the international oil market.

Hassett argued that while disruptions in the Hormuz corridor may affect oil-dependent nations in the Gulf region more severely, the direct economic impact on the United States would remain limited. “What Iran is doing will not harm the American economy,” he asserted.

Breakdown of US Spending in Iran Conflict

Analysts caution that while the direct fiscal burden on the United States may be manageable, the broader economic effects of rising oil prices and geopolitical instability in the Middle East could have far-reaching implications for global markets.