Donald Trump's war on Iran has driven the US military into a severe financial crisis, with the US Navy forced to transfer money from its payroll and other accounts to cover the costs of combat, according to documents obtained by the Guardian and interviews with navy officials, contractors, and defense analysts.
The US-Israeli operation, which has depleted US munitions stockpiles and prompted retaliatory Iranian strikes that have wrecked strategic bases across the Middle East, is piling pressure on budgets across the military. Experts and former officials say accounts are running dry and funding a war with no clear endgame is the main challenge.
The Navy's budget strain is particularly acute due to the high cost of naval operations—including deploying carrier strike groups, launching cruise missiles, and maintaining a continuous presence in the Persian Gulf and surrounding waters. Diversions from payroll accounts could affect service members' pay and benefits if the situation continues without additional congressional appropriations.
The conflict has already seen the US expend significant numbers of precision-guided munitions, including Tomahawk missiles and air-to-ground weapons. Iranian retaliatory strikes have targeted US bases in Iraq, Syria, and the Gulf region, causing damage to infrastructure and equipment.
Defense analysts warn that without a clear strategy or an off-ramp, the financial strain will only worsen. The Pentagon has not publicly disclosed the total cost of operations so far, but independent estimates suggest it could already exceed $50 billion.
Congressional leaders have so far been reluctant to authorize additional emergency funding, with some Republican lawmakers expressing concern about the lack of a defined mission. The White House has not announced any plan for a cease-fire or de-escalation.