Data collected by Stockholm International Peace Research Institute (SIPRI) show a significant gap in military spending between the United States (US) and Iran over the past two decades.
Using constant prices converted into US dollars (US$) at 2024 values, US military expenditure has been far higher than Iran’s.
Between 2004 and 2024, US military spending ranged between US$795 billion and US$1 trillion per year.
The highest level was recorded in 2010, reaching US$1.03 trillion. The lowest was in 2024 at US$795.29 billion.
According to SIPRI, the US remains the country with the largest military expenditure in the world.
In constant (2024) prices, US military spending in 2024 stood at US$968.38 billion, while in current prices it reached US$997.3 billion, accounting for 37% of total global military expenditure.
Meanwhile, Iran’s spending ranged between US$5 billion and US$7 billion in constant (2024) terms. The highest level was recorded in 2006 at US$7.58 billion, while the lowest occurred in 2015 at US$5.15 billion.
All US figures refer to the fiscal year (October 1 of the previous year to September 30 of the stated year), rather than the calendar year.
US military expenditure includes part of the total spending of the National Intelligence Programme, which SIPRI classifies as military-related activities. The figures also include estimates of US military aid to Ukraine.
For Iran, the figures include spending on the Iranian Revolutionary Guard Corps (IRGC), which is defined as a paramilitary force. The data also include pensions categorized under the Armed Forces Social Security Organization.
The exchange rate used to convert Iranian rials into US dollars is based on the NIMA rate introduced by the Central Bank of the Islamic Republic of Iran in April 2018.
US May Strike Iran
According to a report by Katadata, the US military is prepared to strike Iran as early as this weekend, although President Donald Trump has not yet made a final decision.
Citing CNN on Thursday (February 19, 2026), sources said the US military had been briefed to be ready for possible action by the weekend, following a significant buildup of air and naval assets in the Middle East in recent days.
However, one source cautioned that Trump has personally argued both for and against military action and has sought input from advisers and allies on the best course of action.
The move follows ongoing nuclear negotiations held in Geneva, Switzerland, on Tuesday (February 17, 2026). Iranian and US negotiators exchanged notes for three and a half hours but left without a clear resolution.
Iran’s chief negotiator said both sides agreed on a “set of guiding principles,” although a US official stated that “many details still need to be discussed.”
The US is now expected to intensify sanctions threats and potential military action against Iran following the deadlock in the second round of talks. The tougher US stance also comes after Tehran conducted joint naval exercises with Russia in the Gulf of Oman.
Washington views Iran’s move as worsening regional security conditions and reducing the prospects for a diplomatic agreement.
Prior to the Geneva meeting, the US and Iran had also held a first round of nuclear talks on February 6 in Oman, which acted as mediator.
White House Press Secretary Karoline Leavitt said Washington and Tehran remain far apart on several key issues, particularly uranium enrichment and the scope of a potential nuclear agreement.
“We are still very far apart on several issues,” Leavitt said, as reported by Al Jazeera on Thursday (February 18, 2026).