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How costly is Iran’s retaliation for the US? Base damage has already hit $800 million

Iran strikes caused $800 million damage to US bases in two weeks; radar systems hit, war costs surge.
March 22, 2026 / 12:40 IST
Satellite images point to repeated hits on key Gulf bases; radar and THAAD systems among worst affected
Snapshot AI
  • Iran strikes caused $800M damage to US bases in two weeks
  • High-value radar and satellite systems among hardest hit
  • Strait of Hormuz blockade raises global energy security concerns

Iranian airstrikes on US-linked military bases across the Middle East have caused an estimated $800 million in damage in just the first two weeks of the war, according to a BBC analysis citing a report by the Center for Strategic and International Studies (CSIS).

The damage largely stems from Tehran’s retaliatory strikes following coordinated US and Israeli airstrikes launched on February 28.

While the full scale of losses remains unclear, the estimate offers an early indication of the financial toll the conflict could impose if it drags on.

“The damage to US bases in the region has been underreported,” the BBC report quoted Mark Cancian, co-author of the CSIS study, as saying. “Although that appears to be extensive, the full amount won't be known until more information is available.”

High-value military systems among hardest hit

The BBC analysis found that Iran’s strikes have focused heavily on high-value military infrastructure, particularly radar and satellite-communication systems.

A key example is the radar for a Terminal High Altitude Area Defense (THAAD) system at a US air base in Jordan, which suffered heavy damage. The radar alone is estimated to cost about $485 million, based on US defence budget documents reviewed by CSIS.

In addition, damage to buildings and other infrastructure at US air bases across the region is estimated at another $310 million.

Iranian strikes have also targeted similar systems in the United Arab Emirates and other Gulf locations, with satellite imagery indicating significant damage, though the precise cost remains uncertain.

Satellite imagery reveals repeated base hits

BBC’s analysis of satellite imagery suggests that Iran struck several US-linked bases multiple times during different phases of the conflict.

The affected sites include:

  • Ali Al-Salim Air Base in Kuwait
  • Al-Udeid Air Base in Qatar
  • Prince Sultan Air Base in Saudi Arabia

Images show fresh damage across these bases, including radar components and infrastructure.

At a US naval base in Bahrain, satellite imagery revealed the destruction of two radomes — protective structures that house sensitive communication equipment. The BBC report described it as “highly probable” that critical systems were damaged.

The analysis noted that restrictions on US-based satellite imagery providers limited the full assessment of damage.

Mounting human and financial costs

Beyond infrastructure losses, the conflict has also resulted in casualties. The US has lost 13 military service members since the war began.

A US-based Human Rights Activists News Agency estimate puts the total death toll at nearly 3,200, including around 1,400 civilians.

The financial cost is escalating rapidly. According to US officials cited in the BBC report:

  • The first six days of the war cost $11.3 billion
  • The first 12 days cost $16.5 billion

The Pentagon has sought an additional $200 billion in war funding, with Defence Secretary Pete Hegseth indicating that the figure could increase.

Strait of Hormuz blockade adds strategic pressure

Iran has also moved beyond airstrikes, blocking the Strait of Hormuz, a critical chokepoint through which about 20 percent of global oil supplies pass.

The blockade has heightened global energy security concerns and added uncertainty over the duration and escalation of the conflict.

It has also triggered speculation over whether the US could deploy ground forces to reopen the waterway.

What this means: Early signal of a costly, prolonged conflict

The $800 million damage estimate, while partial, underscores the vulnerability of expensive military infrastructure in the region and the rising cost of sustaining operations.

With repeated strikes on critical systems, mounting casualties, and a rapidly expanding war budget, the early phase of the conflict is already proving financially and strategically costly for Washington.

US President Donald Trump has said the campaign is on track to achieve its objective of dismantling Iran’s nuclear programme. “We're doing extremely well in Iran,” he said.

But with Iran continuing retaliatory strikes and disrupting global energy flows, the trajectory of the conflict — and its ultimate cost — remains uncertain.

Moneycontrol World Desk
first published: Mar 22, 2026 12:40 pm

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