THAAD Crisis: How Iran’s Missiles Exposed America’s Defense Weakness
The U.S. used a significant portion of its THAAD missile interceptors defending Israel during a brief war with Iran, revealing critical shortages in its defense stockpiles. This rapid expenditure highlights manufacturing gaps that could impact future military operations and deterrence efforts.
During the 12-day Israel-Iran war from June 13-24, 2025, U.S. forces expended approximately 25% of their Terminal High Altitude Area Defense (THAAD) interceptors, firing between 100 and 150 missiles to counter Iranian ballistic missile attacks on Israel. With each interceptor costing about $12.7 million per the 2025 Missile Defense Agency budget, the operation drained an estimated $1.27 to $1.91 billion from U.S. reserves. Deploying two of its seven THAAD batteries to Israel, the U.S. helped intercept 86% of over 500 Iranian missiles, though 36 struck populated areas, causing significant damage in cities like Tel Aviv. The rapid depletion has raised alarms about U.S. defense manufacturing capacity, with only 11 interceptors produced in 2024 and 12 more planned for 2025, far below wartime needs.
A U.S. missile defense expert stated, “The reports about THAAD expenditure are concerning. This is not the sort of thing the US can afford to do repeatedly. THAAD is a very scarce resource.” The Pentagon’s 2026 budget allocates $2.5 billion for missile production and $1.3 billion for supply chain enhancements, reflecting pre-existing concerns about stockpile shortages that could weaken deterrence against Iran or other adversaries like China. Lockheed Martin, THAAD’s manufacturer, operates nine batteries globally, with seven under U.S. control (two in the Middle East, others in Texas, Guam, and South Korea) and two in the UAE, which previously countered Houthi missiles. The conflict exposed vulnerabilities, as THAAD struggled with advanced Iranian missiles like the Fattah-1 hypersonic, with interception rates dropping from 92% to 75% by the war’s end. Posts on X highlighted the strain, with one user noting, “$800M in 12 days to shield Israel, can the U.S. sustain this?” Ongoing support for Ukraine and potential Pacific conflicts further stress U.S. reserves, underscoring the need for accelerated production to maintain global readiness.