Tehran’s cheap, abundant drones outlast costly Western interceptors that are slow to replace
A Terminal High Altitude Area Defense (THAAD) interceptor is launched, in this undated handout photo. Photo: Reuters
The escalating conflict between Iran, the United States and Israel is exposing a widening cost imbalance between Tehran’s mass drone production and the expensive air defence systems used to counter them, the Daily Mail reported, quoting defence analysts.
Iran’s retaliatory campaign has involved coordinated strikes against Israel as well as US and allied military bases in the UAE, Kuwait, Bahrain, Qatar and Saudi Arabia. By dispersing attacks across multiple theatres and sustaining launches reportedly exceeding 2,500 drones per day, Tehran is stretching adversaries’ air defence resources across thousands of kilometres.
Analysts say the financial disparity is stark. A single Iranian drone can cost as little as $35,000 to produce, while intercepting it may cost between $500,000 and $4 million, depending on the system used. Standard military practice often requires firing two or more interceptors at a single incoming target, further accelerating stockpile depletion.
Western officials warn that interceptor inventories are already under strain. During fighting in June 2025, the US fired roughly 150 THAAD interceptors over 12 days to defend Israel — about a quarter of its stockpile. Each interceptor costs approximately $15 million and can take years to replenish.
Now, the same systems are being relied upon simultaneously across several countries as Iranian attacks intensify. Other munitions, including sea-launched Tomahawk cruise missiles and air-launched weapons, are also reportedly in high demand.
Open-source intelligence estimates place Iran’s Shahed drone fleet at between 80,000 and 100,000 units across variants, with production continuing at roughly 500 per month. At full capacity, that could translate into sustained waves of more than 2,500 drones daily for weeks.
Kelly Grieco of the Stimson Centre told Bloomberg that anti-ballistic missile interceptors are a particular concern. “We are using these interceptors faster than we can make them,” she said. William Alberque of the Pacific Forum added that magazine capacity was already low following last year’s fighting.
Lower-cost alternatives are being explored. The US has expanded use of APKWS guided rockets, costing around $28,000 per shot, which have reportedly achieved high interception success rates in testing. Israel’s Iron Beam laser system, capable of destroying targets for only a few dollars per shot, offers another potential solution, though only a limited number of units are currently operational and based in Israel.
Military analysts say the central question is sustainability: whether Iran can maintain the pace of drone launches longer than its adversaries can sustain the financial and logistical burden of defending against them.
