The escalating war in Iran has already rattled global markets and driven oil prices to their highest levels since April 2024. If the conflict persists, the strain on the global economy deepens and the burden on U.S. taxpayers grows.
With U.S. military operations costing more than a billion dollars each day, experts warn that a prolonged war could require a significant increase in defense spending, further affecting the federal budget.
The U.S. and Israel launched attacks on Iran on Feb. 28 after nuclear talks with Islamic Republic failed to produce a deal. President Donald Trump and Secretary of War Pete Hegseth have laid out four military objectives: Destroying Iran's missile capabilities, neutralizing its navy, preventing the development of nuclear weapons, and ensuring the regime can't direct terrorism beyond its borders.
Both Trump and Hegseth said the conflict is at the beginning. It's unclear how long the war could continue, but Trump said it could be several weeks. On Friday, Trump said he would accept nothing less than Iran’s unconditional surrender.
