The United States has entered one of its most consequential military confrontations in decades after launching Operation Epic Fury alongside Israel on February 28, 2026.
With US President Donald Trump indicating that operations against Iran may continue for four to five weeks — and potentially longer — the financial implications are not lost on Washington and the American taxpayer.
From the immediate expense of cruise missile launches and bomber sorties to the broader economic shock of energy market disruption, the price of war is mounting on multiple fronts.
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How extensive is US Operation Epic Fury?
Operation Epic Fury represents
one of the largest coordinated US military campaigns in West Asia in recent years. According to the US military’s Central Command (CENTCOM), more than 1,000 targets within Iran have been struck since the operation commenced.
In a separate announcement, CENTCOM said 11 Iranian ships had been hit and destroyed.
The Pentagon has confirmed the use of over 20 different weapons systems spanning air, land, sea and missile defence forces.
Air power and strike capabilities relied on a wide range of aircraft comprising B-1 bombers; B-2 stealth bombers, deployed against critical nuclear and military installations; F-35 Lightning II and F-22 Raptor stealth fighters; F-15 fighter jets, which have been used extensively; three were lost in an incident over Kuwait on March 1; F-16 Fighting Falcons; F/A-18 Super Hornets; and A-10 attack aircraft.
Electronic warfare has been conducted by EA-18G Growlers, tasked with neutralising enemy air defence systems. Airborne early warning and control aircraft (AWACS) have provided command-and-control coordination, ensuring synchronised battlefield operations.
Uncrewed systems have featured prominently. LUCAS drones — described as “low-cost unmanned combat attack system” one-way drones reverse-engineered from Iranian designs —
have been deployed in combat for the first time.
In addition, MQ-9 Reaper drones are active in both reconnaissance and precision strike missions.
On the ground, M-142 High Mobility Artillery Rocket Systems (HIMARS) have been utilised, while Tomahawk cruise missiles have been launched from naval assets.
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Iranian retaliatory missile and drone launches have triggered defensive responses. The United States has deployed Patriot interceptor systems and THAAD (Terminal High Altitude Area Defense) to intercept incoming ballistic missiles.
Counter-drone systems have also been activated to neutralise aerial threats.
Two carrier strike groups are also operating in the region, led by aircraft carriers USS Gerald R Ford and the USS Abraham Lincoln. These strike groups form the backbone of American sea-based projection capabilities in the conflict zone.
Maritime surveillance is being conducted by P-8 Poseidon aircraft. Meanwhile, logistics and sustainment operations depend on C-17 Globemaster and C-130 Hercules aircraft, as well as aerial refuelling tankers that maintain continuous sortie operations.
The breadth of forces deployed shows that this is not a limited engagement but a sustained and integrated military campaign.
The financial outlay began even before the first strike was launched. The pre-combat military buildup included repositioning more than a dozen naval vessels and over 100 aircraft to the West Asian theatre.
Elaine McCusker, a former senior Pentagon budget official now at the American Enterprise Institute, told the Wall Street Journal that this preparatory phase cost approximately $630 million.
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According to her assessment, these expenses are expected to be absorbed within the Pentagon’s fiscal year 2026 defence allocation of $839 billion.
Once operations commenced, spending accelerated sharply. Reports by Anadolu news agency estimate that US strikes conducted during the first 24 hours of Operation Epic Fury cost roughly $779.174 million.
That single-day expenditure represents about 0.1 per cent of the 2026 US defence budget.
In addition to munitions and aircraft operations, naval deployments contribute a daily financial burden. The Center for New American Security estimates that operating a single carrier strike group costs around $6.5 million per day.
With two deployed in the Persian Gulf region, daily naval operating costs reach approximately $13 million.
Equipment losses further compound expenses. At least
three US fighter jets were shot down in Kuwait in what American officials described as a friendly-fire incident. Replacement of aircraft, munitions and other assets adds to the total fiscal commitment.
When the initial mobilisation costs and first-day strike expenditures are combined, more than $1.4 billion had already been committed within the opening phase of the conflict.
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How high could the direct military bill climb?
While initial expenditures are measurable in the billions, projections for sustained operations point toward far larger figures.
Kent Smetters, director of the Penn Wharton Budget Model (PWBM), provided a range of potential costs in an interview with Fortune. He estimated that direct budgetary costs to taxpayers could range between $40 billion and $95 billion.
His central projection stands at approximately $65 billion, covering military operations as well as replenishment of equipment and supplies. “If the war lasts more than two months, then this number goes up,” he added.
The Penn Wharton Budget Model is widely used in Washington for analysing fiscal and macroeconomic implications of federal policies.
Beyond direct military spending, Smetters projected additional economic losses to the United States of around $115 billion. However, he indicated that the range of uncertainty is wide, stretching from $50 billion to as much as $210 billion.
Taken together, the combined fiscal and economic burden could therefore approach or exceed $200 billion if the conflict persists and broader disruptions intensify.
The potential costs of Operation Epic Fury must also be considered within the context of existing fiscal pressures.
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According to the Institute of International Finance, US government debt reached 122.8 per cent of GDP at the end of 2025, up from 119.9 per cent a year earlier. Debt held by the public is nearing 100 per cent of GDP,
approaching levels last recorded in the aftermath of World War II.
Although initial operational costs may be absorbed within the existing defence budget, prolonged military engagement could increase borrowing requirements or reallocate spending priorities.
How are energy markets reacting to the conflict?
One of the most immediate economic conseq