US War in Iran Costs Washington $29 Billion as Inflation Surges

WASHINGTON: (Web Desk) – The United States’ military campaign linked to Iran has so far cost Washington nearly $29 billion, according to the Pentagon, as rising war-related energy prices continue to fuel inflation and political pressure ahead of the US midterm elections.

A senior Pentagon official informed lawmakers on Tuesday that the total cost of the conflict had increased by $4 billion compared to estimates released last month.

Speaking before Congress, Jules Hurst, who is currently performing the duties of comptroller at the Pentagon, said the updated figure includes operational expenses along with the repair and replacement of military equipment used during the conflict.

“The joint staff team and the comptroller team are constantly reviewing and updating the estimate,” Hurst said while appearing alongside Defense Secretary Pete Hegseth and Chairman of the Joint Chiefs of Staff General Dan Caine.

Earlier, on April 29, the Pentagon had estimated the war expenditure at $25 billion. However, officials acknowledged that the costs continue to rise as military operations and logistical support expand.

According to a Reuters report, a source familiar with the matter had earlier revealed that the administration of US President Donald Trump estimated the first six days of military action alone had cost at least $11.3 billion.

Inflation Pressure Intensifies

At the same time, new economic data released by the US Labor Department showed consumer inflation accelerated sharply in April, largely driven by rising energy and food prices linked to instability in the Middle East.

The Consumer Price Index (CPI) rose 0.6 percent in April following a 0.9 percent increase in March, marking the strongest annual inflation rise in nearly three years.

On a yearly basis, inflation climbed to 3.8 percent in April compared to 3.3 percent in March — the highest level since May 2023.

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Economists say the conflict involving Iran has disrupted global energy markets, pushing oil prices above $100 per barrel earlier this year before slightly easing following a temporary ceasefire.

Energy prices increased 3.8 percent in April, accounting for more than 40 percent of the monthly rise in inflation. Gasoline prices jumped 5.4 percent, while fuel oil rose 5.8 percent. Electricity costs also moved higher.

Food inflation also accelerated, with grocery prices rising 0.7 percent during the month. Beef prices surged 2.7 percent, while fruits and vegetables became 1.8 percent more expensive. Prices of dairy products, eggs and nonalcoholic beverages also recorded notable increases.

Americans Feeling Economic Pressure

Economic analysts warned that inflation is once again putting pressure on American households, especially middle- and lower-income families.

Heather Long, chief economist at Navy Federal Credit Union, said inflation is now eroding wage gains for many workers.

“For the first time in three years, inflation is eating up all wage gains,” she said, describing the situation as a major setback for ordinary households struggling with higher living costs.

Core inflation, which excludes food and energy prices, also increased by 0.4 percent in April — the biggest monthly rise since January 2025. Housing costs, airline fares, clothing and household goods all became more expensive.

The Federal Reserve last month kept interest rates unchanged in the range of 3.50 percent to 3.75 percent. Strong employment data and persistent inflation have strengthened expectations among economists that the central bank may delay interest rate cuts until 2027.

Political Impact Ahead of Elections

The economic pressure is creating fresh political challenges for President Donald Trump and the Republican Party ahead of the upcoming midterm elections.

Democrats have intensified criticism of the administration, arguing that the costly war and rising prices are worsening the cost-of-living crisis for ordinary Americans.

Recent opinion polls show growing public dissatisfaction over the handling of the economy, particularly rising fuel and grocery prices.

Financial markets reacted negatively to the inflation report, with US stocks opening lower while Treasury yields and the US dollar moved higher amid concerns that inflation may remain elevated for a prolonged period.

Economists also warned that continued instability in the Middle East could further tighten global energy and food supplies in the coming months, increasing pressure on consumers worldwide.