Peter Schiff Warns War Financing Poses Greater Risk To US Economy Than Iran Regime Itself

• Schiff said increasing reliance on borrowing to sustain military operations could drive up national debt and inflation. 
• He had earlier warned that climbing interest rates, rising defense costs, and a decline in income could push debt to $50 trillion. 
• The Pentagon has reportedly proposed seeking $200 billion in new congressional funding for the war. 

Economist Peter Schiff on Thursday warned that the financial consequences of a prolonged conflict involving Iran could far outweigh the geopolitical risks. 

In a post on the X platform, he stated that “the ante for the Iran war has already risen to $200 billion.”

Escalating War Costs

He cautioned that once fully engaged, government expenditures may surge by hundreds of billions more.

Rather than viewing Iran itself as the central threat, Schiff emphasized the financial repercussions tied to funding a long conflict. He said that increasing reliance on borrowing to sustain military operations could drive up the national debt while intensifying inflationary pressures.

Economic Fallout In Focus

The comment comes as The Washington Post reported the Pentagon is considering a funding request exceeding $200 billion for the Iran conflict, which would need congressional approval, as costs rise sharply and strain military resources.

Speaking at a Pentagon briefing, Defense Secretary Pete Hegseth acknowledged the potential $200 billion request but indicated the figure is not finalized and “could move” as discussions continue between the Pentagon and the White House.

Earlier on Wednesday, Schiff had stated that a combination of climbing interest rates, escalating defense expenditures, and declining government income could push the U.S. closer to a $50 trillion debt milestone.

U.S. equities edged lower on Thursday. At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was down 0.7%; the Invesco QQQ Trust ETF (QQQ) declined 0.8%. Retail sentiment on Stocktwits around the S&P 500 ETF was in ‘extremely bearish’ territory.

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