The conflict in the Middle East, sparked by the United States and Israel, has exposed a growing imbalance: using high-cost missiles to intercept low-cost drones is proving economically unsustainable. As a result, Washington and its allies are accelerating efforts to develop cheaper alternatives, The Wall Street Journal reports.

For now, U.S. forces continue to rely on interceptors priced at over $1 million to shoot down drones launched by Tehran. That disparity has pushed both startups and major defense contractors to search for solutions that could slash costs by an order of magnitude.

One example highlighted in the report is Perseus Defense, a startup founded by former NASA engineer Jason Cornelius. The company is working on a missile expected to cost around $10,000 — a compact, faster, and significantly cheaper counterpart to the long-serving AIM-9 Sidewinder.

The wars in Ukraine and the Middle East have also revealed another constraint: limited stockpiles of advanced and expensive systems such as Patriot missiles. These high-precision weapons are increasingly being used against mass-produced drones that cost only a few thousand dollars.

Elaine McCusker, a former senior Pentagon official, estimates that in just the first four days of operations against Iran, the United States may have spent around $5.7 billion intercepting Iranian missiles and drones. Gulf countries, including Saudi Arabia, are likewise spending millions on Patriot systems and air-delivered munitions to counter UAV threats.

The Pentagon, working alongside international partners, is now looking beyond traditional defense contractors in search of more affordable and scalable options. Lieutenant General Frank Lozano, who oversees munitions procurement for the U. S. Army, has indicated that private startups are already offering advantages in both cost and production speed.

Emerging concepts focus on missiles priced in the tens of thousands of dollars, built using commercial components, automation, and 3D printing. Still, some experts caution that many of these systems have yet to be tested in real combat. They are also designed primarily for short-range defense and cannot match the range, speed, or precision of more expensive interceptors.