US Iran War Has Cost $38 Billion, CBO Says
The six-month US war against Iran has already cost approximately $38 billion, with the Congressional Budget Office (CBO) estimating that the cost could rise by another $2 billion to $3 billion for every additional month of fighting.
The CBO assessment, covering costs through August 1, found that the majority of the spending came from replacing expended munitions and equipment, increased military operations and flying hours, and higher fuel costs.
The agency warned that continued fighting could put further pressure on US military readiness. The conflict has significantly reduced stocks of critical munitions, while replenishing some supplies could take years.
The CBO also said the war is contributing to higher energy prices and could increase US inflation by around 0.5 percentage points during the first quarter of 2027 compared with pre-war projections.
The report did not include all potential expenses. Costs from recent attacks on commercial vessels and US military installations, as well as future borrowing costs used to finance the conflict, were excluded and could add tens of billions of dollars.
The Pentagon did not provide information requested by CBO auditors, forcing the agency to rely on government databases and public reports. The CBO therefore cautioned that its estimates contain considerable uncertainty.
The report comes as the US administration faces growing costs from the conflict and seeks to maintain military readiness while addressing disruptions around the Strait of Hormuz, a key global energy route.
