First Two Days of Iran Strikes Cost $5.6 Billion in Munitions: Report

Defense Secretary Hegseth at a briefing last week
Kyodo
By Yuval Rosenberg and Michael Rainey

Good evening. On this date 150 years ago, the first words were successfully conveyed by telephone when Alexander Graham Bell summoned his assistant, Thomas Watson, from another room with the famous words, "Mr. Watson, come here, I want to see you." Nowadays, while we spend hours a day on our phones, talking to other people accounts for just a fraction of our time on the devices. One 2024 survey found that slightly more than half of Americans (52%) spend less than 15 minutes a day on voice calls.

Here's your Tuesday update.

The 'Most Intense Day of Strikes' in Iran

On the 11th day of the war with Iran, Defense Secretary Pete Hegseth told reporters that Tuesday would be "our most intense day of strikes inside Iran: The most fighters, the most bombers, the most strikes, intelligence more refined and better than ever." He added that "the last 24 hours have seen Iran fire the lowest amount of missiles they have fired yet."

Those comments came a day after President Trump offered mixed messages about how much longer the war would last, saying it is already "very complete, pretty much" but also that the U.S. will "go further" and still needed to achieve "ultimate victory."

An Iranian official defiantly insisted that the country is not looking for a ceasefire and another top official issued a threat against Trump, writing in a post on X: "Iran doesn't fear your empty threats. Even those bigger than you couldn't eliminate Iran. Be careful not to get eliminated yourself."

US Used $5.6 Billion in Munitions in First Two Days of Iran War: Report

The U.S. military used an estimated $5.6 billion worth of munitions during the first two days of the war against Iran, according to The Washington Post, which cited three U.S. officials.

The cost estimate was reportedly shared with lawmakers on Monday, underscoring concerns about the speed with which the military is burning through its stockpiles. With one eye on supply levels, the White House is expected to request additional funding for the Iran war from Congress as soon as this week, seeking upwards of $50 billion for the U.S. military and possibly additional funds for Israel and other allies in the Middle East.

Pentagon officials say the marginal cost of its strikes is expected to decline as Iran's defenses deteriorate and the U.S. changes its mix of munitions, moving from more expensive precision weapons such as interceptors and cruise missiles to cheaper laser-guided bombs. Mark Cancian, a military analyst at the Center for Strategic and International Studies, told the Post that the cheaper munitions will help drive the cost of each strike against Iran down from millions of dollars to less than $100,000 in some cases.

The U.S. has struck more than 5,000 targets in Iran so far. Elaine McCusker, a Pentagon official during the first Trump administration, estimates that the U.S. had used more than $5 billion worth of interceptors by the end of the sixth day of the war, with a total cost of the military effort exceeding $11 billion.

The Pentagon's $93 Billion 'Use It or Lose It' September

At a time when there is growing concern about the cost of the war against Iran, and with the Trump administration poised to request a massive increase in the Defense Department's annual budget to $1.5 trillion, a new report raises serious questions about spending practices within the world's largest military.

The federal government's fiscal year ends in September, and that can add perverse incentives for government officials facing "use it or lose it" spending rules that can affect funding for agencies that spend less than their budgets allow. These incentives were particularly noticeable at the Department of Defense last fall, according to the conservative watchdog group Open the Books, which documented a $93.4 billion burst in spending at the Pentagon.

Open the Books says that military spending spikes in September every year, regardless of which party is in power, as administrators face the threat of losing unspent funds and possibly seeing their budgets shrink. This past September, though, appears to have set a record. "[T]here has never been anything quite like September 2025, when $93.4 billion was spent on grants and contracts," the group writes. "Since at least 2008 - and presumably in history - no federal agency has ever spent so much on grants and contracts in a single month."

Since 2008, average monthly spending excluding September at the Defense Department has been $28.9 billion; the September average is $62.4 billion. In just the last five business days of September 2025, the Pentagon spent $50.1 billion on grants and contracts - more money than the entire defense budgets of Israel and Italy.

The reported list of purchases by defense officials in September includes a remarkable array of items, some of which seem more appropriate for a country club or hotel. Some examples:

  • $6.9 million for lobster tail;
  • $15.1 million for ribeye steak;
  • $2 million for Alaskan king crab;
  • $5.3 million for Apple electronic devices;
  • $4 million for Samsung electric devices;
  • $139,224 for 272 orders of doughnuts;
  • $12,540 for three-tiered fruit basket stands;
  • $98,329 for a Steinway & Sons grand piano for the Air Force chief of staff's home;
  • $21,750 for a custom handmade flute from the luxury Japanese brand Muramatsu;
  • $225.6 million for furniture, including $60,719 worth of chairs from Herman Miller.

Analysts at Open the Books say the spending numbers suggest that use-it-or-lose-it budgeting rules need to be reformed.

"Congress should consider allowing the DoD to roll over portions of its budget to the following year instead of wasting money on seafood and pianos every September," the group says. "Article 1, Section 8 of the Constitution states that funding 'to raise and support armies' can be used up to two years after it is appropriated. The current one-year deadline is arbitrary and must be re-examined."

State Department Authorizes $40 Million for Middle East Evacuation Flights

The State Department has authorized up to $40 million in emergency funds to be used for charter flights to evacuate Americans leaving the Middle East, the Associated Press reports. "The department had approved the use of money from a fund normally reserved for emergencies involving diplomatic and consular staff, according to two U.S. officials who were not authorized to comment publicly and spoke to The Associated Press on condition of anonymity," AP's Matthew Lee writes.

The State Department last week said it will waive a legal obligation for U.S. citizens to reimburse the government for such transportation.

More than 40,000 American citizens have safely returned to the United States from the Middle East since February 28, the State Department says, up from more than 32,000 as of two days ago. The department says it has completed more than two dozen charter flights for evacuations from the region.

Quote of the Day

"For a long time, the nightmare scenario that deterred the U.S. from even thinking about an attack on Iran and which got them to urge restraint on Israel was that the Iranians would close the Strait of Hormuz. ... Now we're in the nightmare scenario."

− Maurice Obstfeld, a senior fellow at the Peterson Institute for International Economics and former chief economist at the International Monetary Fund, quoted in an Associated Press article detailing the global economic concerns stemming from the Iran war.

Energy Secretary Chris Wright wrongly posted today that the U.S. Navy had successfully escorted a tanker through the Strait of Hormuz. That led oil process to plunge, and they closed the day sharply lower - U.S. crude prices fell about 12%, to $83.45 a barrel - even though Wright's post was taken down and the White House clarified that it was incorrect. "The U.S. Navy has not escorted a tanker or a vessel at this time," White House Press Secretary Karoline Leavitt said.

Fiscal News Roundup

Views and Analysis