U.S.-Iran War Has Cost $38bn and Could Add $3bn Every Month, CBO Says

The six-month U.S. war against Iran has cost approximately $38 billion and could add another $3 billion for every additional month of fighting, according to the Congressional Budget Office.

The nonpartisan congressional budget agency calculated direct costs through August 1.

Most of the expenditure has resulted from the rapid consumption of U.S. munitions, with CBO estimating that depleted stockpiles could take five years to replenish.

The consequences extend beyond military spending.

CBO estimates that disruption caused by the war could increase U.S. inflation by around 0.5 percentage points during the first three months of 2027.

Higher energy prices have contributed to that pressure as attacks and disruption around the Strait of Hormuz affect global oil supplies.

CBO also warned that shortages of critical munitions, including missile interceptors, could restrict the Pentagon’s ability to respond to another major conflict.

The report specifically identifies a potential conflict involving China and Taiwan as an example of where depleted inventories could affect U.S. military readiness.

Eighteen U.S. service members have been killed during the war.

The Pentagon disputed claims that the United States faces dangerous shortages, saying it has the weapons required to meet the president’s strategic objectives.

CBO also reported that the Department of Defense did not cooperate with congressional financial auditors conducting the assessment.

The $38 billion estimate does not include some recent attacks or the borrowing costs associated with financing the conflict, meaning the eventual financial cost could be higher.

Source

• Reuters – Iran war cost reaches $38bn and could rise $3bn a month, CBO says