**Military Campaign Against Iran Could Cost U

Military Campaign Against Iran Could Cost U.S. Economy Up to $210 Billion, Budget Expert Warns

The United States' military strikes on Iran, now in their fourth day under Operation Epic Fury, could impose an economic cost of as much as $210 billion, according to Kent Smetters, director of the Penn Wharton Budget Model and a leading fiscal analyst.

Smetters told Fortune the direct budgetary cost ranges from $40 billion to $95 billion, with $65 billion as the likely figure for military operations, equipment replacement, and munitions. That estimate assumes the campaign lasts roughly two months; costs would escalate if operations extend longer.

The assessment carries weight in Washington policy circles. Smetters, a former Congressional Budget Office economist and Deputy Assistant Secretary for Economic Policy at the Treasury Department, directs a model widely used by lawmakers from both parties to evaluate fiscal and macroeconomic impacts of federal policy.

The higher $210 billion figure reflects broader economic effects beyond direct military spending. Smetters cautioned that traditional cost-of-war calculations often overlook counterfactual scenarios—what the economy would have done absent the conflict.

CFOs and treasury teams should monitor how extended operations could pressure federal budgets and influence fiscal policy discussions on Capitol Hill.