The United States has spent an estimated $25 billion on its military campaign against Iran, a Pentagon official disclosed Wednesday, as global oil prices surged to about $119 per barrel amid fears of supply disruptions in the Middle East.
Jules Hurst, performing duties as comptroller of the Pentagon, told the House Armed Services Committee that most of the $25 billion went to munitions. He did not detail whether the estimate included costs for rebuilding and repairing military base infrastructure damaged during the conflict. The disclosure came after months of lawmakers pressing for a figure. Rep. Adam Smith, the top Democrat on the committee, said: "I'm glad you answered that question. Because we've been asking for a hell of a long time, and no one's given us the number."
The fallout reached Nigeria immediately. Dangote Refinery raised the ex-depot price of petrol to N1,275 per litre, an increase of N75 per litre, reflecting the crude price spike and associated supply costs. The refinery passed the burden of Middle East instability directly to Nigerian consumers.
The United States began strikes against Iran on February 28. The two countries maintain a fragile ceasefire, but the Pentagon has deployed tens of thousands of additional troops to the Middle East, including keeping three aircraft carriers in the region. Thirteen US troops have been killed and hundreds wounded. Oil and natural gas shipments have been disrupted since the war started, driving up prices for petrol and agricultural products like fertilisers across America.
Donald Trump insisted Wednesday that the blockade on Iran will remain until Tehran agrees to renegotiate its nuclear programme, signalling a prolonged standoff. The conflict has damaged Trump's popularity. Just 34 per cent of Americans approve of the US war with Iran, down from 36 per cent in mid-April and 38 per cent in mid-March, according to a Reuters/Ipsos poll.
Brent crude rose to $119 a barrel Wednesday afternoon, the highest price this month and nearly 7 per cent higher in a single day. The key Strait of Hormuz, which carries about a fifth of the world's oil and liquid natural gas supply, has been effectively closed for weeks. Iran has severely restricted shipping through the strait in response to US and Israeli strikes and has threatened to target any vessel approaching it. The US announced its forces would intercept or turn back vessels travelling to or from Iranian ports.
With mid-term elections six months away, Democrats are rising in public opinion polls and linking the unpopular Iran war to affordability concerns. The next move depends on whether Trump and Iran shift from the current military posture toward negotiations on Tehran's nuclear programme.
