T
he six-month-old U.S. war against Iran has cost Washington about $38 billion so far, with the figure expected to increase by roughly $3 billion each month, according to an assessment by the Congressional Budget Office (CBO), adding to pressure on the Trump administration as it searches for a way to end the conflict and reopen the Strait of Hormuz.
The nonpartisan congressional budget office said its accounting covered costs through August 1 and estimated that the war could increase U.S. inflation by 0.5% during the first three months of 2027. The growing financial burden comes alongside mounting pressure on American military stockpiles and higher energy prices linked to the conflict.
The CBO’s assessment highlights the broader consequences of the war for U.S. military readiness and the federal budget. It said the majority of the costs resulted from the rapid drawdown of U.S. munitions, warning that replenishing depleted stockpiles could take as long as five years.
The report comes as Washington continues military operations against Iran while attempting to address disruptions around the Strait of Hormuz, a critical global energy route. The waterway previously carried roughly 20% of the world’s oil, and attacks and disruptions in the region have contributed to sharp increases in energy prices.
The latest CBO estimate is close to the $37.5 billion cost Defense Secretary Pete Hegseth reported during a Senate hearing on July 21. Hegseth has also called for nearly $90 billion in emergency funding to replenish U.S. weapons supplies.
The CBO said shortages of critical munitions, including missile interceptors, could limit the Pentagon’s ability to respond if the United States becomes involved in another major conflict.
Among the scenarios cited was a potential future confrontation involving China and Taiwan. The assessment indicates that the continued use of U.S. weapons in the Iran conflict could have consequences extending beyond the Middle East by reducing supplies available for other military contingencies.
Reuters reported in August that the United States had used virtually all of its long-range precision missiles during the war. The CBO estimated that rebuilding those stockpiles could take several years.
The Department of Defense did not cooperate with congressional financial auditors, according to the CBO. Pentagon officials, however, rejected the assessment that the military was facing inadequate supplies.
White House spokeswoman Anna Kelly described President Donald Trump’s attacks on Iran as “decisive action” aimed at preventing Tehran from threatening U.S. personnel or interests. She said the military had more than enough munitions, ammunition and stockpiles to meet the president’s strategic objectives.
Pentagon spokesman Sean Parnell also disputed the findings on shortages, saying the department had everything necessary to conduct strikes when and where the president ordered them.
The CBO accounting also excludes some expenses that could push the eventual cost substantially higher. It did not include the costs of recent attacks on commercial vessels in the Strait of Hormuz or strikes on U.S. military installations in the region. Nor did it account for borrowing costs associated with financing the war, which could add tens of billions of dollars to the total.
The financial estimate comes amid a significant human toll. Eighteen U.S. service members have been killed in the conflict, according to the report.
Beyond military spending, the war has created economic consequences through disruptions to energy supplies and higher prices.
Attacks affecting the Strait of Hormuz and energy facilities in neighboring Gulf countries have sharply increased energy costs for consumers and producers. The resulting inflationary pressure is expected to continue affecting the U.S. economy, with the CBO projecting a 0.5% increase in inflation during the first three months of 2027.
The higher costs come at a time when the United States is already facing growing fiscal pressures. The country’s total public debt surpassed $40 trillion in August, adding another concern as Washington continues to finance the war and other government commitments.
The Pentagon’s inspector general separately reported that Iranian attacks had damaged or destroyed hundreds of buildings at U.S. military bases in the Middle East, along with fighter aircraft, refueling planes and drones. Its assessment put the cost of the war through June 19 at $33.4 billion, including about $184 million in damage to U.S. diplomatic facilities.
The scale of the current spending is also being viewed against previous U.S. wars. Trump has frequently compared the Iran conflict with the wars in Iraq and Afghanistan. The eight-year Iraq war cost about $2 trillion, while the two-decade conflict in Afghanistan cost an estimated $2.3 trillion, according to figures cited by Reuters.
For the Trump administration, the latest CBO assessment underscores the financial and military costs accumulating as the conflict continues. With expenses projected to rise by billions of dollars each month and weapons stockpiles requiring years to replenish, the war is creating pressures that extend beyond the immediate battlefield and into U.S. economic and defense planning.
(Source: Reuters)
Stay informed by subscribing to
our weekly newsletter.
