The first U.S. Inspector General report on Operation Epic Fury says the military campaign against Iran cost the United States an estimated $33.4 billion by June 29, 2026, while 14 American service members were killed and 417 were wounded during the operation. The report also warns that the war significantly depleted U.S. munitions stockpiles and exposed weaknesses in the country’s defense industrial base.
The report, prepared for the U.S. Congress, is the first official oversight assessment of the operation. It was coordinated by the Department of Defense Inspector General, with contributions from the inspectors general of the State Department and the U.S. Agency for International Development (USAID), under quarterly reporting requirements established by the Inspector General Act.
US military campaign targeted thousands of sites
According to the report, the United States launched Operation Epic Fury on February 28, 2026, in coordination with Israel, with the stated objective of degrading Iran’s nuclear, missile, naval and security infrastructure and preventing Tehran from acquiring a nuclear weapon.
U.S. Central Command (CENTCOM) said the main phase of the campaign lasted until early April and involved strikes on approximately 13,500 targets, nearly 36,000 combat sorties, and more than 1,800 fire missions. More than 50,000 U.S. troops were deployed across the Middle East during the operation.
The report estimates the campaign’s total cost at $33.4 billion, including $7.4 billion in operational expenses, $22.3 billion in munitions consumed, and $3.7 billion in destroyed or damaged military equipment. It says those figures do not include the cost of repairing damaged infrastructure.
The State Department separately reported spending $113 million related to the conflict through June, including emergency evacuations of diplomatic personnel, family members, U.S. citizens, and eligible third-country nationals.
Casualties and damage across the Middle East
The report says 14 U.S. service members died between February 28 and June 30, including seven killed in combat operations and seven in non-combat incidents. Another 417 personnel were wounded during the campaign, while four additional U.S. troops were killed in combat in July.
Inspectors also documented extensive damage to U.S. military infrastructure in the Gulf region. According to the report, Iranian missile and drone attacks damaged or destroyed hundreds of buildings and facilities at U.S. bases in Kuwait, Bahrain, Qatar, the United Arab Emirates, Saudi Arabia, Iraq, Oman and Jordan.
Dozens of U.S. aircraft were also reported damaged or destroyed, including F-15E fighter jets, KC-135 aerial refueling aircraft, an F-35A fighter, an A-10 attack aircraft, and up to 30 MQ-9 Reaper drones, according to the report.
The report estimates damage to U.S. diplomatic facilities in Iraq, Kuwait, Saudi Arabia and the UAE at approximately $184 million.
Thousands evacuated as regional conflict escalated
The inspectors general said around 3,500 U.S. diplomatic personnel were either authorized or ordered to leave Middle Eastern countries during the reporting period.
The State Department also coordinated the evacuation of approximately 9,000 U.S. citizens from the region, arranging 56 evacuation flights, charter buses, security assistance and travel support as hostilities intensified.
The report says Iran and allied armed groups launched thousands of missiles and drones against U.S. bases, naval vessels and regional partners. It adds that integrated U.S. and allied missile defense systems intercepted more than 6,000 one-way attack drones and 1,500 ballistic missiles during the conflict.
Report warns of strategic munitions shortages
One of the report’s most significant findings concerns the impact of the conflict on U.S. weapons inventories.
The Office of the Under Secretary of Defense for Acquisition and Sustainment concluded that the campaign created strategic shortages in key munitions stockpiles and revealed major production bottlenecks within the U.S. defense industry.
The report identifies shortages in solid rocket motors, high-grade explosives, propellants and skilled manufacturing labor as critical obstacles to replenishing inventories.
Pentagon officials said rebuilding stockpiles will require significant time despite efforts to expand production lines, secure critical materials and coordinate with allies. The Defense Department has requested $67.1 billion in emergency funding, including $21 billion specifically for replenishing munitions.
Naval blockade, sanctions and failed ceasefire
The report says the United States imposed a naval blockade on Iranian ports beginning in April and, by mid-June, had turned back more than 140 commercial vessels while disabling 10 ships that violated the blockade. More than 50 humanitarian aid vessels were allowed to transit the Strait of Hormuz under inspection procedures.
It also outlines diplomatic efforts that briefly produced a ceasefire between Washington and Tehran through the Islamabad Memorandum of Understanding, brokered by Pakistan in June. The agreement sought to guarantee safe commercial shipping through the Strait of Hormuz for 60 days while negotiations continued.
However, inspectors said negotiations over Iran’s nuclear program collapsed, the ceasefire broke down, and military operations resumed.
The report also describes Washington’s parallel “Economic Fury” campaign targeting Iran’s oil exports, banking sector, shadow tanker fleet and weapons procurement networks. It says the United States sanctioned or froze the assets of more than 1,000 individuals, entities and vessels during the reporting period.
The inspectors conclude that while the operation significantly degraded Iranian military infrastructure, it also imposed substantial financial costs, casualties and logistical challenges on the United States, with long-term consequences for military readiness and regional security.
