CBO Says Iran War Costs Reach $38 Billion, Set To Climb Further

The six-month U.S. conflict with Iran has cost $38 billion so far and is projected to grow by another $3 billion per month, according to a new report from Congress’s nonpartisan budget office, as the Trump administration searches for a way to end the fighting and reopen the Strait of Hormuz.

Munitions Drawdown Drives Bulk Of Costs

The Congressional Budget Office said most expenses stem from a rapid depletion of U.S. munitions stockpiles, which could take up to five years to fully replenish. The figure closely matches an earlier estimate given by the defense secretary at a July Senate hearing. The Pentagon did not cooperate with congressional financial auditors during the review. White House officials pushed back on concerns about munitions shortages, saying the military retains sufficient stockpiles to meet its strategic goals, while the top Pentagon spokesperson said the U.S. has everything needed to strike when necessary.

Broader Economic And Military Impact

The report estimates the war will raise inflation by about 0.5% in early 2027, driven partly by energy price spikes tied to disruptions near the Strait of Hormuz, a route that historically carried about a fifth of the world’s oil. The budget office also warned that depleted missile interceptor stockpiles could limit the Pentagon’s ability to respond to other potential conflicts, including tensions involving China and Taiwan.

Eighteen U.S. service members have died in the conflict so far, and the total does not include recent strikes on commercial vessels or the cost of borrowing to finance the war. The Pentagon’s inspector general also reported significant damage to U.S. bases and aircraft in the region from Iranian strikes.