Iranian missile and drone attacks have inflicted $184 million in damage to US diplomatic facilities across the Middle East, according to a newly released Pentagon Inspector General report that provides the first comprehensive accounting of the physical toll from the US-Iran conflict.
The 44-page report, covering the period through June 30, 2026, documents destruction at US installations spanning eight countries: Kuwait, Bahrain, Qatar, the UAE, Saudi Arabia, Iraq, Oman, and Jordan. Hundreds of buildings and structures sustained damage, with Iraq bearing the heaviest burden by a wide margin.
Iraq took the worst of it
Of the $184 million in estimated damage to diplomatic facilities, Iraq alone accounts for more than $157 million. That figure stems from over 600 separate attacks on US positions in the country.
The attacks weren’t limited to buildings and embassies. The report reveals that at least 30 MQ-9 Reaper drones were either damaged or destroyed. KC-135 refueling aircraft and other military assets also took hits.
One of the more notable incidents involved the US Navy base in Bahrain, which was struck by a combination of drones and ballistic missiles.
$33.4 billion and counting
The damage to diplomatic facilities and military hardware is just one slice of a much larger financial picture. Total costs associated with the conflict from February 28 through June 29, 2026, have reached an estimated $33.4 billion. That number does not include infrastructure repair expenses, meaning the actual price tag is higher still.
The report marks the first formal accounting since Operation Epic Fury began on February 28, 2026. The expenditure rate, averaging over $8 billion per month, suggests that prolonged operations could place serious strain on defense budgets.
Strategic implications and what to watch
The loss of 30-plus Reaper drones represents a meaningful reduction in ISR (intelligence, surveillance, and reconnaissance) capacity. Each MQ-9 costs roughly $30 million.
The damage to KC-135 tanker aircraft is also consequential. Aerial refueling is the backbone of American air power projection, and every tanker taken offline shrinks the operational envelope.
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