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“That quickly becomes a problem because the most benefit ... is in their favor," one expert said.

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As American warships rack up kills against Houthi drones and missiles in the Red Sea, Pentagon officials are increasingly alarmed not just at the threat to U.S. naval forces and international shipping — but at the growing cost of keeping them safe.

U.S. Navy destroyers have shot down 38 drones and multiple missiles in the Red Sea over the past two months, according to a Defense Department official, as the Iran-backed militants have stepped up attacks on commercial vessels moving energy and oil through the world’s most vital shipping lanes. On Saturday alone, the destroyer USS Carney intercepted 14 one-way attack drones.

Houthi leaders have said the attacks are a show of support for the Palestinians, and that they won’t stop until Israel halts its operations in Gaza. Defense Secretary Lloyd Austin on Monday announced a new international maritime coalition to safeguard shipping and counter the attacks.

The cost of using expensive naval missiles — which can run up to $2.1 million a shot — to destroy unsophisticated Houthi drones — estimated at a few thousand dollars each — is a growing concern, according to three other DOD officials. The officials, like others interviewed for this story, were granted anonymity to describe sensitive operations and internal deliberations.

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The cost of using expensive naval missiles which can run up to $2.1 million a shot to destroy drones, estimated at a few thousand dollars each, is a growing concern according to three other DOD officials.

“The cost offset is not on our side,” said one DOD official.

“That quickly becomes a problem because the most benefit, even if we do shoot down their incoming missiles and drones, is in their favor,” said Mick Mulroy, a former DOD official and CIA officer. “We, the U.S., need to start looking at systems that can defeat these that are more in line with the costs they are expending to attack us.”

DOD officials would not confirm what types of weapons are being used or the range at which the drones are being intercepted, citing operational security. But former DOD officials and experts said only one weapon would make sense for that job: the Standard Missile-2, a medium-range air defense weapon that can reach up to 92 or 130 nautical miles, based on the variant. The latest variant, the Block IV, costs $2.1 million a shot.

By contrast, experts estimate the one-way attack drones, which are primarily Iranian-made, cost just $2,000 at most. The larger Shahed-136 is estimated at $20,000, said Shaan Shaikh, a fellow with the Missile Defense Project at the Center for Strategic and International Studies.

This is what happens when every general and admiral goes on the payroll for Raytheon, Lockheed, or General Dynamics after they retire.

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