A new CBO report estimates the six-month-old conflict has cost $38 billion, with monthly expenses projected to rise by $3 billion.
Key facts
- •The war has cost $38 billion over six months, with a projected monthly increase of $3 billion.
- •The CBO estimates that replenishing U.S. munitions stockpiles could take up to five years.
- •The conflict is forecast to increase inflation by 0.5% in the first quarter of 2027.
- •Eighteen U.S. military service members have died during the war.
- •The Department of Defense did not cooperate with the CBO's financial auditors.
The U.S. war in Iran has reached a cost of $38 billion, according to a report released Tuesday by the Congressional Budget Office (CBO). The nonpartisan agency projects that expenses will continue to grow by $3 billion each month as the Trump administration seeks to resolve the conflict and reopen the Strait of Hormuz.
By the numbers
Financial and Economic Impact
The CBO report, which calculated expenses through August 1, noted that the war is expected to increase inflation by 0.5% during the first three months of 2027. These figures align closely with the $37.5 billion estimate provided by Defense Secretary Pete Hegseth during a Senate hearing on July 21. The report excludes costs related to recent attacks on commercial vessels and U.S. military installations, as well as borrowing expenses associated with financing the war.
Munitions and Military Readiness
The majority of the war's costs are attributed to the rapid consumption of munitions. The CBO estimates that replenishing U.S. stockpiles could take five years, noting that the Department of Defense did not cooperate with the audit. While the CBO report highlights concerns regarding munitions shortages, White House spokeswoman Anna Kelly and Chief Pentagon spokesperson Sean Parnell disputed these findings, asserting that the military maintains sufficient supplies to meet strategic goals.
Political Response
The inquiry was requested by Representative Brendan Boyle, the top Democrat on the House Budget Committee. Boyle stated that the war has resulted in casualties, noting that 18 U.S. service members have died in the conflict. In response to the report, the White House described the military campaign as a necessary action to protect U.S. personnel and interests.
Timeline
- July 21Defense Secretary Pete Hegseth reported a war cost of $37.5 billion at a Senate hearing.
- August 1The CBO concluded its accounting of war expenses.
- TuesdayThe CBO released its report on the $38 billion cost of the war.
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This article was independently rewritten by ManyPress editorial AI from reporting originally published by The New Arab, Al-Monitor.
