While the war in Iran costs the United States a billion dollars a day, the price to pay could become even higher. The ongoing negotiations between the warring countries could indeed include $300 billion in reparations for Iran.
The financial cost of the war in Iran is increasing
The Pentagon and the United States Congress had set the cost of the war in Iran as follows: $11.3 billion for the first 6 days, then $1 billion per additional day. But what was supposed to be a blitzkrieg got bogged down. Result: according to the Iran Cost Ticker site, expenses linked to the war in Iran currently exceed $98.4 billion.
41.6 million dollars are swallowed up every hour in the war in Iran, if we are to believe the Pentagon’s forecasts. Furthermore, the cost of the war is passed on to American consumers, with the rise in oil prices.
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In total, the Americans have spent an additional $20.9 billion since the start of the conflict to cope with the new prices at the pump. According to Moody’s, this corresponds to an increase of $447 on average per household.
A price to pay for stopping the war…
And the bill could still increase considerably. According to information from the New York Times, the peace plan between the United States and Iran would include a fund of 300 billion dollars dedicated to Iran. While the Iranians consider it a “ reconstruction program ” to repair the damage done by Israel and the United States, the latter are more cautious.
The White House indeed seems to want to present this fund as a “ investment fund ” making it possible in particular to support real estate projects in Tehran. The idea, however, remains the same: American taxpayers could pay hundreds of billions of dollars to support Iran’s post-war efforts.
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The war, already very unpopular across the Atlantic, could therefore end with even more mistrust on the part of American taxpayers. But the stakes are high: the reopening of the Strait of Hormuz. A key point of the conflict, it has led to a considerable rise in oil prices, depriving the world of part of its supply. The United States could therefore bend over backwards to achieve this.
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Source : New York Times
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Journalist at Cryptoast since 2017, I am passionate about the issues of decentralization, privacy and regulation. I specialize in traditional economics and finance by analyzing how news in this sector influences the cryptocurrency sector, providing a unique and informed perspective to Cryptoast readers.
Marine Debelloir
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