Iraq war costs set to exceed Vietnam

The Iraq war has already cost the United States $320bn (£180bn), according to an authoritative new report, and even if a troop withdrawal begins this year, the conflict is set to be more expensive in real terms than the Vietnam War, a generation ago.

The estimate, circulated this week by the non-partisan Congressional Research Service (CRS), can only increase unease over the US presence in Iraq, whose direct costs now run at some $6bn a month, or $200m a day, with no end in sight.

The Bush administration has refused to provide any specific overall figure for the war's cost. But the Senate is set to approve another emergency spending bill in May, meaning that Iraq will have consumed $101bn in fiscal 2006 alone, almost double the $51bn of 2003, the year of the invasion itself - and all at a time when the federal budget deficit is running at near record levels.

But these figures pale beside what lies in store, the CRS says in its analysis. The Bush administration is desperate to announce a reduction in the 130,000-strong US force before November's mid-term elections, where public disillusion with the war threatens disaster for the Republicans. >>>cont