US Considers Cutting Gulf Troops as Iran War Costs Soar to $37.5B

Thu Aug 20 2026
Austin Collins (847 articles)
US Considers Cutting Gulf Troops as Iran War Costs Soar to $37.5B

In light of the extensive damage sustained by American facilities amid the hostilities with Iran, the Pentagon is reportedly considering strategies to reduce the United States’ enduring military footprint in the Persian Gulf, as detailed in a report by source. The extensive damage has compelled Washington to reassess its long-standing regional security strategy. The deliberations are still in a preliminary stage and do not represent a formal review as required by US Secretary of War Pete Hegseth. Rather, the Pentagon’s policy wing, alongside the Joint Staff and US Central Command, is evaluating potential configurations for America’s military presence once hostilities cease, including whether severely compromised bases should be reconstructed in their current formats. Typically, the US deploys around 40,000 personnel across nearly 20 installations stretching from Jordan to Oman, with several of its main permanent complexes located within the Persian Gulf.

Bahrain serves as the headquarters for the US Fifth Fleet, with significant American Army and Air Force assets deployed throughout Kuwait, Qatar, and other neighbouring Gulf nations. However, the war revealed the significant susceptibility of these facilities to incoming Iranian missile and drone strikes. Over 200 US installations have experienced damage or destruction amid the ongoing conflict, as reported by source, with six American service members losing their lives during a March assault on a military site in Kuwait. Additionally, the Pentagon has expended over 1,000 advanced air-defense interceptors to safeguard its troops, creating severe strains on stockpiles of Patriot and Terminal High Altitude Area Defence systems. The extent of the devastation has prompted officials to view this as an opportunity to reassess the deployment and positioning of US assets. A segment of the internal discussions within the Pentagon has focused on the strategic repositioning of personnel and equipment further westward, possibly toward Jordan, Israel, or the Red Sea coast of Saudi Arabia, in order to reduce vulnerability to Iranian strikes emanating from across the Gulf. A source familiar with the US deployment adjustments told The Washington Post that certain shifts away from major Gulf facilities might persist beyond the conclusion of the war. “Iran thinks we are in the traditional places,” the person said. “And we are not.”

The ongoing debate highlights a more profound ideological division within the Trump administration concerning international military interventions. While one faction of officials advocates for a reduction in Middle Eastern security guarantees to prioritise homeland defence and deter China, more hawkish figures are campaigning to expand the US presence elsewhere in the region, including Israel. One specific plan delineates the closure of facilities situated within the striking range of Iranian missiles and drones, including bases in Kuwait, while reallocating forces from the UAE, Jordan, and Bahrain to more secure locations. A separate recommendation envisions the relocation of additional US military capabilities to Israel’s Ovda Airbase. However, that proposal has faced internal resistance within the administration due to concerns that an increased American presence in Israel might expose US forces to counterintelligence risks, especially in light of growing Pentagon apprehensions regarding Israeli espionage. For Washington’s Gulf partners, a significant American drawdown would entail extensive consequences. These nations have relied on US forces for regional stability for several decades, and substituting American security guarantees with domestic defence enhancements or alternative global alliances would necessitate years to achieve.

Even so, a reduction in troop strength would not necessarily terminate the broader strategic partnership. Gulf nations may sustain their relationships with Washington via arms acquisitions, intelligence collaboration, and supplementary defence agreements, despite a reduced US military footprint in the region. The Pentagon projects that the Iran war will tally approximately USD 37.5 billion by late September, a figure that excludes the immense financial requirements needed to rebuild destroyed infrastructure. With reconstruction plans pending, the conflict presents Washington with a fundamental choice that transcends mere repair costs: determining whether many of these facilities warrant restoration at all. Any definitive shift in America’s Middle Eastern military footprint remains tentative and would necessitate formal authorisation from senior administration leadership. Nevertheless, the Pentagon’s internal assessments indicate that the conflict has created a distinct opportunity for Washington to reform a fundamental aspect of its strategic military framework in the region.

Austin Collins

Austin Collins

Austin Collins is our Europe, Asia, & Middle East Correspondent. He covers news related to Stock Market. In past he has worked for many prestigious news & media organizations. He is based in Dubai

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