US spends billions to counter low-cost Iranian weapons

The United States is facing a growing asymmetric defence challenge as it counters waves of low-cost Iranian drones with significantly more expensive interceptor systems, according to analysts and defence experts.

Iranian drones, built using largely commercial-grade components, cost roughly $35,000 to produce, a fraction of the price of the sophisticated munitions often used to destroy them, says the New York Times.

In the first six days of the conflict, the United States spent about $11.3 billion on military operations against Iran. While the White House and Pentagon have not released updated figures, the American Enterprise Institute estimated in early April that total US spending had reached between $25 billion and $35 billion, with interceptor use accounting for a substantial portion of the cost.

At the centre of the issue is what analysts describe as a mismatch between US defence systems and evolving battlefield tactics. Much of Washington's air defence infrastructure was developed during the Cold War to counter a limited number of advanced, fast-moving threats, rather than large-scale deployments of inexpensive drones.

Iran has sought to exploit this gap by deploying multiple Shahed-136 drones, which have a range of about 1,500 miles and can strike targets across the Middle East at relatively low cost.

A drone is launched during a military exercise in an undisclosed location in Iran, in this handout image obtained on August 25, 2022. Iranian Army/WANA (West Asia News Agency)/Handout via REUTERS

The United States has relied on a layered defence strategy, though each component presents limitations.

Air-based responses, including F-16 fighter jets equipped with APKWS II rockets, are seen as relatively cost-efficient. However, their use is constrained by the scale of operations and by attacks on early warning aircraft that are critical for detecting incoming threats.

Ground-based systems such as the Coyote interceptor offer a lower-cost alternative, but limited procurement has forced US forces to rotate systems between multiple bases to maintain coverage.

More advanced interceptors, including the Navy's SM-2 missiles and the Army's Patriot systems, are designed primarily for higher-end threats like ballistic missiles and aircraft. Standard operating procedures often require firing two missiles per target, increasing the overall cost when used against inexpensive drones.

As a final layer of defence, the Centurion C-RAM system provides short-range protection using rapid-fire guns. While relatively inexpensive, its limited range restricts its use to last-resort scenarios.

To address the cost imbalance, the Pentagon has invested more than $1 billion in directed energy weapons, such as lasers, which could reduce the cost per interception to a few dollars per shot. These systems have yet to be deployed operationally.

Other emerging technologies include artificial intelligence-powered interceptor drones, such as the Merops Surveyor, though it remains unclear whether these systems have been used in combat.

Defence experts say the challenge extends beyond financial cost to concerns about supply. The high rate of interceptor use has raised questions about whether US stockpiles can be replenished quickly enough to sustain prolonged operations.

Despite the expense, officials say defending high-value assets remains essential. These include critical infrastructure such as advanced radar systems in the region, which can cost more than $1 billion and are considered vital to maintaining operational awareness.