Why Iran’s cheap drones are costing the US millions to neutralise in Middle East war

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The United States currently holds air superiority over Iran. But while Washington dominates militarily, the financial arithmetic tells a more complicated story. Tehran has leaned heavily on inexpensive, one-way kamikaze attack drones to carry out strikes across the region. The US and its allies possess advanced air defence systems that can intercept most incoming ballistic missiles and drones — but those systems come with a steep price tag, reports New York Times.Arthur Erickson, chief executive and co-founder of Texas-based drone maker Hylio, was quoted by NYT as saying: “It is definitely more expensive to shoot down a drone than to put a drone in the sky.” “It’s a money game. The cost ratio per shot, per interception, is at best 10 to 1. But it could be more like 60 or 70 to 1 in terms of cost, in favour of Iran.”CLICK HERE FOR THE LATEST UPDATES ON THE MIDDLE EAST WAR.The solution, build your own cheap interceptor drones. And that’s exactly what the US is trying to do — redesigning Iranian drones to fit its war strategy within a budget.Since the United States and Israel launched strikes over the weekend, Iran has reportedly deployed more than 2,000 one-way drones. Despite the presence of air defence systems worth billions of dollars, some of those drones have reached their intended targets.The Iranian drone challenge – cheap, small, deadlyAmong Iran’s most widely used systems are the triangular Shahed loitering munitions. About 11 feet long, they emit a loud buzz and carry explosives in the nose, detonating on impact. Compact enough to be launched from trucks, they are easy to conceal and difficult to track. A Shahed 171 Simorgh drone (Wikimedia Commons)The longer-range Shahed-136 variant can travel roughly 2,500 km, enabling strikes across much of the Middle East.Story continues below this adThe versatility of Shahed dronesBuilt using commercially available electronics, each Shahed drone is estimated to cost between $30,000 and $50,000 to produce, depending on the model, as per NBC News.Russia has also mass-produced its own version of the Shahed drone for use in Ukraine. Iran itself is believed to have manufactured thousands.What does it cost to stop a Shahed drone?By contrast, the Patriot missile defence system — widely considered a benchmark in air defence — relies on interceptors that can cost more than $3 million per launch and are produced in limited numbers. In 2025, Lockheed Martin delivered 620 PAC-3 interceptors, a record output for the company, reports NYT.US Defense Secretary Pete Hegseth acknowledged the financial strain at a Wednesday briefing. “We have pushed every counter-UAS system forward, sparing no expense,” he said, underscoring the high cost of maintaining effective defences.Story continues below this adSearch for cheaper solutionsThe US military has deployed alternative counter-drone technologies aimed at reducing costs. Raytheon’s Coyote system, which uses drones to hunt and destroy other drones, carries an estimated price tag of about $126,500 per interceptor, according to a report from the Center for a New American Security. Though far less expensive than a PAC-3 missile, it still costs several times more than a Shahed.“They are trying to use the cheapest bullet they can to do the job they need it to do,” said Riki Ellison, chairman and founder of the Missile Defense Advocacy Alliance.Other tools include electronic jamming systems that interfere with navigation signals, as well as microwave and laser-based technologies designed to disable or redirect drones. These options are generally more affordable than missile interceptors, but their effectiveness varies, and some can disrupt civilian infrastructure.In Ukraine, counter-drone strategies have evolved continuously to keep pace with shifting Russian tactics. Ukrainian forces have even resorted to basic measures, such as fishing nets and shotguns against low-flying drones — methods that are difficult to apply reliably on a large scale.Story continues below this adAmerica’s drone gapFor years, the US military prioritised large, sophisticated unmanned aircraft like the Predator. However, it has struggled to scale up production of low-cost, expendable drones similar to those now shaping battlefields in Ukraine and the Middle East.The Department of Defense has recently moved to accelerate production, announcing contract awards totaling $1.1 billion over two years in four phases. Twenty-five companies, including some from Ukraine, are competing for $150 million in initial funding. The aim is to have new drones delivered within months rather than years. A LUCAS drone costs around $35,000 (Wikimedia Commons)As per The Conversation, US officials have also said they reverse-engineered a captured Iranian Shahed and developed a modified version for use in the current conflict. The system, known as LUCAS — short for Low-cost Unmanned Combat Attack System — is produced by Arizona-based SpektreWorks, which did not respond to a request for comment. The expense of production of these suicide drones is relatively low, with each piece costing roughly $35,000.‘Shahed-like’ drone used to target British airbaseThe drone warfare is now under immense scrutiny and pressure. In fact, replicas of the Shahed drone are now being used in the Middle East war, and not just by Iran, it seems.Story continues below this adThe United Kingdom Ministry of Defence on Thursday said its RAF Akrotiri military base was targeted by a “Shahed-like drone” on March 2, which was not launched from Iran. This raises several questions on the origin of the drone as only Iran and Russia are known to use the Shahed drone. While the US uses the LUCAS kamikaze drones, they are clearly identifiable. It remains to be seen if a third player is using Shahed drones or a version, close to it.Will interceptor supplies hold up?Questions remain about whether the United States and its allies can maintain adequate stocks of interceptors if hostilities persist. Observers point to difficulties in supplying Ukraine with sufficient air defence munitions as evidence of potential strain.A December report from the Center for Strategic and International Studies analysed public procurement data and found that the United States has been buying interceptors in relatively small quantities — in the hundreds rather than thousands — in recent years. Although new contracts aim to increase production, expanding manufacturing capacity will take time.On Wednesday, Gen. Dan Caine, chairman of the Joint Chiefs of Staff, addressed concerns over inventory levels. “We have sufficient precision munitions for the task at hand — both on the offense and the defence,” he was quoted as saying by NYT. “But I want to tell you, teammates, as a matter of practice, I don’t want to be talking about quantities.”Story continues below this adOn Wednesday Trump US President Donald Trump said: “The United States Munitions Stockpiles have, at the medium and upper medium grade, never been higher or better – As was stated to me today, we have a virtually unlimited supply of these weapons. Wars can be fought ‘forever’, and very successfully, using just these supplies (which are better than other countries finest arms!) [sic].”