Foreign Policy > Iran

47 Years of Economic War: Epic Fury at Iran’s Assault on America

Iran is often looked at in terms of terrorism. But economically, the mullah regime has cost us billions, too.

Joseph Ford Cotto | March 5, 2026

Operation Epic Fury did not emerge from impulse.

It followed nearly half a century of sustained hostility from Iran that has imposed ludicrous costs on the United States. While Iran is indisputably a state sponsor of terror, it also has a long string of related economic acts that have cost taxpayers billions, too.

President Donald J. Trump authorized the operation on Feb. 28, after three rounds of failed negotiations in which Iran refused to renounce its nuclear ambitions.

He described the mission as a precise and overwhelming military campaign. It is designed to eliminate the nuclear threat, destroy ballistic missile infrastructure, neutralize proxy terror networks, and cripple naval assets. Of course, there is also the goal of spurring internal regime change, hopefully led by the Iranian people.

The justification for decisive action rests on a documented record that stretches back generations.

Iran’s revolution sharply reduced oil production. Before Islamism overthrew the pro-Western monarchy in 1979, this was at roughly 6 million barrels per day. However, output plummeted to about 1.5 million barrels daily in 1980. Global oil prices rose from approximately $15 per barrel in early 1979 to more than $39 by mid-1980.

That supply shock intensified the already present inflation and deepened recession in the U.S., raising gasoline and heating costs for American households.

The 1979 hostage crisis halted roughly $12 billion in annual trade between Iran and America, disrupting agricultural and manufacturing exports and harming U.S. producers. As oil prices climbed from $13 to $34 per barrel during the crisis period, the broader economic toll on America reached an estimated $70 billion in lost gross domestic product. Those figures reflect direct economic harm tied to Islamist revolutionary upheaval.

During the ensuing Iran-Iraq War, Iran targeted neutral shipping amid the Persian Gulf in what became known as the Tanker War. These attacks jeopardized significant volumes of global oil transit through the Strait of Hormuz, increasing shipping insurance premiums and raising energy import costs. To........

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