Afghanistan and Iraq Wars Cost $1.6trillion

The financial toll of America's wars in Afghanistan and Iraq was laid bare yesterday when a congressional committee estimated the cost of both conflicts at $1.6 trillion (£771bn) and rising - $20,000 for every family of four in the US.

The assessment, by the joint economic committee, factors in knock-on effects including long-term health care for the wounded, interest on money borrowed for the war chest and oil market disruptions.

Democrats, who produced the report, said it demonstrated how George Bush's foreign policy had real consequences for Americans back home. But White House spokeswoman Dana Perino said the committee had produced a report that was "an attempt to muddy the waters on what has been some positive developments being reported out of Iraq".

The report coincided with a statement from the military indicating that the surge launched by Bush in January to put a lid on sectarian violence and insurgent attacks is starting to wind down. A 3,000-strong armored brigade has started withdrawing from Diyala province and will not be replaced, the second large unit to leave Iraq since September.

Attacks on US troops have fallen, while Sunni tribes in the western Anbar province have sided with the Iraqi government against foreign al-Qaida fighters.

One threat to the security gains is the prospect of a Turkish invasion in the north, in pursuit of Kurdish rebels who have attacked government forces in eastern Turkey. Yesterday, hundreds of Turkey's counter-terrorist special forces were sent to reinforce 100,000 troops after four Turkish soldiers died in clashes with guerrillas from the Kurdistan Workers' party (PKK) rebel movement.