The cost of war on Iran: shocking figures and global economic repercussions
A senior official at the U.S. Department of Defense (the Pentagon) revealed alarming figures regarding recent military operations, confirming that the war with Iran since February 28th has cost the U.S. Treasury a staggering $25 billion. This surprising announcement highlights the enormous scale of military spending and the profound repercussions that direct conflicts in the Middle East can have on both the U.S. and global economies.
The historical context of tensions and the escalating cost of war on Iran
These developments were not spontaneous but rather the culmination of decades of complex geopolitical tensions between Washington and Tehran. Historically, US-Iranian relations have witnessed a series of escalations since the late 1970s, punctuated by crippling economic sanctions, proxy wars, and a constant display of military power in the Persian Gulf and the strategic Strait of Hormuz. The cost of war with Iran extends far beyond direct operations, encompassing decades of military preparations, the deployment of bases, and the securing of shipping lanes through which a significant portion of the world's energy supply passes. This historical context explains the rapid depletion of financial resources once any actual confrontation erupts, as military infrastructure requires continuous maintenance and replenishment.
Details of the military budget and Operation Epic Wrath
In detailing the shocking figures, Jules Hearst, the Pentagon's accountant, explained the massive financial expenditure in his testimony before the US House of Representatives. Hearst stated unequivocally, "We spent $25 billion on Operation Epic Fury," using the operation's official name. The US official indicated that the vast majority of this extraordinary budget was allocated to procuring advanced munitions, precision missiles, and the complex logistics required to manage a conflict of this scale, reflecting the costly nature of modern warfare.
Global economic repercussions: Millions of people living below the poverty line
The effects of this conflict extend far beyond military borders and defense budgets, reaching deep into the global economy. In this context, the head of the United Nations Development Programme issued stark warnings that the current conflict, which has led to severe disruptions in supply chains and a dramatic rise in energy and fertilizer prices, could push more than 30 million people worldwide into extreme poverty.
On the sidelines of the G7 development meeting held in the French capital, Paris, Alexander De Croo expressed the magnitude of the tragedy in words that reflected its scale, saying: “It took decades of time and effort to build stable societies and develop local economies in many countries, but it only took a few weeks of war to destroy all that effort and set those countries back a long way.”.
Regional and international impact on developing countries
International figures and statistics paint a grim picture. De Croo explained that studies conducted just six weeks after the start of military operations revealed catastrophic results. These studies estimated that even if the conflict had ended at that point, 32 million people would have been pushed into a state of economic and social vulnerability across 160 different countries.
These serious repercussions have prompted international financial institutions to take action. Intensive discussions are currently underway within the International Monetary Fund and the World Bank to find mechanisms to mitigate the shock. The United Nations Development Programme (UNDP) specifically warns of the profound and devastating impact of the war on sub-Saharan African countries, which are already suffering from economic crises, as well as on Asian countries such as Bangladesh and Cambodia. Island developing countries, which are heavily reliant on imports and highly vulnerable to fluctuations in shipping and energy prices, will also be among the hardest hit by this escalating global crisis.
