WASHINGTON: The US-Iran war cost reached about USD 38 billion through August 1, with continued fighting projected to add USD 2 billion to USD 3 billion a month, the Congressional Budget Office said.
The nonpartisan budget agency said most direct costs came from replacing expended munitions and equipment lost in combat, alongside increased flying hours, operations and fuel expenses. The conflict began on February 28 as Operation Epic Fury.
CBO estimated that a month of relatively low-intensity operations would cost about USD 2 billion, while fighting at roughly July’s intensity would cost about USD 3 billion. Costs could rise further during a larger escalation.
The conflict has also depleted US missile-defence inventories. CBO estimated replacing munitions used through August 1 would cost about USD 21.7 billion, including USD 13.1 billion for missile interceptors and USD 7.3 billion for land-attack cruise missiles.
The agency warned that reduced interceptor inventories could constrain US military options for several years if another major conflict emerged, citing a potential confrontation involving China and Taiwan as an example. Rebuilding depleted stockpiles could take five years or longer, according to the congressional analysis.
Read: Trump Iran War Prediction Says Conflict Will End Soon
Higher energy prices from disruptions in the Strait of Hormuz and the Red Sea are also affecting the US economy. CBO now projects first-quarter 2027 inflation to be 0.5 percentage points higher than it forecast in February, rather than saying inflation itself will rise by only 0.5%.
The CBO said the Department of Defense did not respond to its requests for information, increasing uncertainty around the estimate. Defense Secretary Pete Hegseth had told senators in July that the war had cost about USD 37.5 billion.
Pentagon casualty data reported through September shows 18 US service members killed and more than 750 wounded since the conflict began.
