Internal estimates within the United States Department of Defense indicate that the true cost of the war with Iran is significantly higher than publicly disclosed figures. Updated assessments suggest that overall expenditure has escalated sharply due to the scale of damage sustained by US military bases and infrastructure across multiple locations in the Middle East.
According to three sources cited by CNN on Thursday, the previously stated estimate of $25 billion, presented by a senior Pentagon official, is considered conservative. It reportedly excludes the substantial costs required to repair widespread damage inflicted on US military facilities in the region.
A source familiar with the matter indicated that the actual financial burden is closer to between $40 billion and $50 billion once reconstruction costs and replacement of destroyed assets are fully accounted for.
Widespread Damage Across US Military Sites
Sources further revealed that Iranian strikes during the initial phase of the conflict caused severe damage to at least nine US military sites within a 48 hour window. These attacks targeted installations in Bahrain, Kuwait, Iraq, United Arab Emirates, and Qatar.
The strikes reportedly destroyed critical radar systems and military equipment across the region. Among the most notable losses was a radar system linked to a THAAD missile system battery in Jordan, as well as facilities housing similar systems at two locations within the United Arab Emirates.
In addition, a US E-3 Sentry aircraft was destroyed during an Iranian strike on an airbase in Saudi Arabia.
Disputed Figures and Political Scrutiny
During a hearing before the US House Armed Services Committee, Pentagon official Jules Hurst stated that the majority of the $25 billion allocation had been spent on munitions. Meanwhile, US Secretary of Defense Pete Hegseth declined to confirm whether the figure included repair costs for damaged bases.
Democratic Representative Ro Khanna challenged the estimate during the hearing, describing it as “completely inaccurate” and raising concerns over transparency in reporting the true scale of expenditure.
Earlier disclosures from Pentagon officials to Congress indicated that the war had already cost approximately $11 billion within the first six days alone. Last month, the Department of Defense submitted a request to the White House seeking approval for additional military funding exceeding $200 billion to sustain ongoing operations.
Uncertain Reconstruction Costs and Expanding Budget
In recent budget briefings, Hurst acknowledged that the Pentagon does not yet have a final figure for the extent of damage to its overseas facilities. He noted that total costs will depend on whether these sites are rebuilt, upgraded, or potentially abandoned.
He also confirmed that repair costs are not included in the Pentagon’s proposed $1.5 trillion budget for the 2027 fiscal year, as strategic decisions regarding reconstruction remain under evaluation. This includes the possibility of allied partners contributing to the rebuilding process.
The proposed 2027 defence budget represents a 42 percent increase in funding for the Department of Defense, reflecting the growing financial strain imposed by sustained military engagement in the region.
