Fuel prices could add more than $1 billion in unplanned costs to the War Department during the Iran conflict.
The issue has raised concerns about training budgets and military readiness.
Pentagon records show that fuel prices have increased by 27% over the past six months.
With the department purchasing approximately 80 million barrels of fuel annually, this price surge could add more than $1 billion in unexpected expenses this year.
Commanders are also grappling with higher civilian fuel prices and commercial airfare costs, which impact troop travel, training, and logistics.
“Current energy market dynamics are increasing fuel costs, which can affect the costs of transporting personnel, supplies, and equipment,” said Lt. Col. Orlando Howard, an Army spokesman.
Some military branches have reduced travel and limited pilot flight hours to minimum requirements in an effort to control costs.
The Pentagon faces a reported $4 billion to $6 billion budget shortfall this fiscal year, driven by factors including fuel costs, expanded missions along the southern border, and the National Guard mission in Washington.
Internal Army assessments from April concluded that financial pressures could leave thousands of soldiers scheduled for deployment to Europe with insufficient training.
It could take more than a year for affected units within the Army’s III Armored Corps at Fort Hood, Texas, to return to preconflict training levels.
The concerns come as the Government Accountability Office has warned that U.S. military readiness has faced challenges for years.
In a March report, the GAO stated that military readiness has been degraded over the past two decades due to factors such as maintaining existing systems while modernizing forces and acquiring new capabilities.
The War Department continues to balance readiness demands, modernization efforts, and priorities outlined in the 2026 National Defense Strategy.