Marketplace All-in-One What war in the Middle East is costing the U.S.
Mar 11, 2026
Kent Smetters, economist and Wharton professor who runs the Penn Wharton Budget Model, breaks down the fiscal price of recent U.S. military operations. He outlines headline costs like a $3.5 billion initial bill and an estimated $800 million per day. Short segments explain what drives those daily costs and how prolonged conflict can reshape borrowing, interest rates, and consumer impacts.
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Loss Of A Fifth Of Global LNG Spurs Global Competition
- The Iran-related disruptions removed about a fifth of global liquefied natural gas supply, intensifying competition for LNG between Europe and Asia.
- Elizabeth Troval notes Asia is buying LNG that would have gone to Europe while Europe tries to refill winter-depleted inventories.
Prepare For Higher Priced LNG And Rationing
- Expect higher LNG prices and shifting flows; countries need to prioritize which buyers can afford expensive cargoes.
- Laurent Rousekis and Lindsay Schneider say poorer Asian countries may be priced out while wealthier nations absorb higher costs.
War Costs About Eight Hundred Million A Day
- The U.S. military operation in Iran is costing roughly $800 million per day according to the Penn Wharton Budget Model.
- That daily figure includes aircraft flight hours (~$25,000/hour for 4th-gen jets), ships, strike packages, munitions, and depot-level maintenance.