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Pentagon says Iran war cost $25 billion — how accurate is that figure?

Pentagon’s official estimate

Officials from the United States Department of Defense told Congress that the $25 billion estimate includes spending on munitions, damaged equipment, and operational costs since the war began on February 28. Acting Pentagon comptroller Jules Hurst said the calculation factors in weapons usage and ongoing military operations, though he did not provide a detailed full breakdown during the hearing.

Defense Secretary Pete Hegseth appeared before the House Armed Services Committee for the first time since the conflict began, as lawmakers reviewed the administration’s broader $1.5 trillion defense budget.

Independent estimates suggest higher costs

However, outside analysts have questioned the Pentagon’s methodology, calling it a “narrow accounting” of total war expenses. According to Bloomberg, estimates based on Pentagon data suggest that $14 billion alone can be attributed to a portion of munitions, equipment damage, and operational deployments. This includes roughly $8 billion for munitions, $5 billion for replacing damaged aircraft and equipment, and about $1 billion for naval operations involving aircraft carriers and destroyers in the region.

The Stimson Center’s senior fellow Kelly Grieco argued that the official figure excludes major costs such as base repairs, fuel expenditures, and broader operational spending. Meanwhile, the Center for Strategic and International Studies estimated that munitions alone could cost as much as $25 billion.

Some lawmakers have also raised concerns, with Senator Richard Blumenthal previously citing estimates of up to $2 billion per day, which he described as a “low-ball figure.”

Broader concerns raised in Congress

During the six-hour hearing, Hegseth faced bipartisan questioning over the war’s financial impact and its effect on U.S. military readiness, particularly the depletion of munition stockpiles. He declined to provide projections on how long the conflict might last or how much additional spending it could require.

Hegseth also stated that an investigation is underway into reports of a strike on a school in Minab, where more than 150 children were reportedly killed.

The defense secretary is expected to continue testimony in a second round of hearings on Thursday as lawmakers press for greater clarity on the full cost of the conflict.

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