Iran Estimates War Damage at $270 Billion as Costs Expected to Rise Further

Iran has estimated its preliminary losses from recent war-related damage at around $270 billion, though a government spokesperson said this figure is only an initial assessment and the final cost is expected to be higher.

Fatemeh Mohajerani provided the estimate in an interview with Russia’s RIA Novosti, according to Iran’s Tasnim news agency. She said that war reparations are among the issues being pursued by Iran’s negotiating team, including during talks in Islamabad. She added that damage assessments must be conducted in several stages.

Separately, analysts estimate that a U.S. blockade of the Strait of Hormuz could cost Iran approximately $435 million per day, including about $276 million in lost oil exports, mainly crude oil and petrochemicals. Miad Maleki, an analyst at the Foundation for Defense of Democracies, based this estimate on Iran exporting 1.5 million barrels of oil per day at a wartime price of about $87 per barrel, assuming that over 90% of exports pass through Kharg Island in the Persian Gulf.

In addition, the United Nations Development Programme has estimated that military escalation in the Middle East could result in global economic losses of $97 billion to $299 billion in the Asia-Pacific region, driven by higher costs for transportation, electricity, and food.

Sources include Al Jazeera, CNN, and The Wall Street Journal.