Iranian Foreign Minister Abbas Araghchi warned that the ongoing conflict with Iran is placing a heavy financial burden on ordinary Americans. He said the so-called Israel First Tax is expected to significantly impact the U.S. economy. Araghchi made the remarks as the war entered its fourth week. He emphasized that the conflict, initially predicted to be short, continues to escalate. “We are only three weeks into this war of choice, imposed on both Iranians and Americans,” he said.
He described the $200 billion Pentagon budget request for additional military spending as merely the tip of the iceberg. The funding aims to replace destroyed weapons and replenish critical stockpiles. These include modern missiles, such as Tomahawk, Patriot, and THAAD systems, which have been used in recent strikes. Preliminary estimates indicate that the first six days of the conflict cost around $11.3 billion. Ammunition alone, used in just the first two days, totaled over $5.6 billion. Araghchi stressed that ordinary Americans would indirectly shoulder the financial consequences of these expenditures.
The Iranian Armed Forces have launched near-daily missile and drone operations in response. These strikes target locations in Israeli-occupied territories as well as U.S. military bases in the region. Officials described the actions as a principle of “eye for an eye,” aiming to impose serious costs on the adversaries. Araghchi reiterated that the Israel First Tax reflects broader economic consequences of a war imposed by external powers. He warned that the financial strain would extend far beyond the Pentagon, affecting ordinary citizens and the overall U.S. economy.
Analysts suggest that if military operations continue at this pace, the economic impact could reach unprecedented levels. The Israel First Tax may pressure lawmakers to reconsider ongoing funding requests. Meanwhile, regional tensions remain high, and retaliatory strikes show no signs of slowing. Economists also noted that the cost of modern military equipment is rising steadily.
They highlighted that such expenditures could weaken fiscal stability, reduce domestic investments, and increase long-term government debt. Looking ahead, Araghchi indicated that Iran will continue its defensive operations while monitoring U.S. economic responses. He emphasized that both military and financial consequences are likely to escalate as the conflict persists. The Israel First Tax, he concluded, represents a growing concern for Americans.