WASHINGTON — The ongoing conflict in Iran has already depleted at least $12 billion from the nation’s coffers, as disclosed by President Trump’s chief economic adviser on Sunday.
Kevin Hassett, who leads the National Economic Council, admitted that war expenses are expected to escalate. However, he downplayed the urgency for Congress to approve additional funding soon.
“The figure I was last updated on stands at $12 billion, aligning with our projections,” Hassett commented during an appearance on CBS News’ “Face the Nation.” He added, “We have the necessary armaments already deployed for this effort, so we might not require immediate extra funding.”
The conflict, which began on February 28, has now entered its third week.
Hassett did not specify the exact number of days the $12 billion expenditure covers, though he confirmed it reflects current spending levels.
In briefings late last week, legislators were informed that the approximate cost of the war with Iran was around $11 billion.
Rumors have swirled that the total cost of a supplemental funding package for the war could clock in at about $50 billion.
The Trump administration has been coy about the timeline for the war, with the president telling Axios, “Any time I want it to end, it will end.”
Trump has also publicly downplayed concerns about US munitions stockpiles to carry out the war, claiming earlier this month that Washington has “virtually unlimited supply of these weapons.”
His administration has been scrambling to address the fallout of Iran’s efforts to wreak havoc in the Strait of Hormuz, where about a fifth of the world’s seaborne oil flows through annually.
Safety concerns about oil vessels traversing the Strait have led to a surge in oil prices. Trump recently announced that US allies would help escort ships through the critical chokepoint.
“The big problem right now would be energy prices, and we’re watching and monitoring closely,” Hassett explained. “We’re looking at things every day and seeing how quickly we progress.”
“We expect that if Iran stops being this disruptive terrorist force in the Middle East that there will be a boom in oil production and industrial production,” he continued. “…We expect that the global economy is going to have a big positive shock as soon as this is over.”
Hassett also reiterated Trump’s claim that the war effort is “ahead of schedule.”
