Iran war cost US $38bn, depleted missile stockpile, CBO finds

Key facts

• The Iran war has cost US taxpayers at least $38 billion, according to the Congressional Budget Office.
• Rebuilding the US stockpile of defensive missiles depleted by the conflict could take at least five years.
• Monthly costs for the war are projected to be $2 billion to $3 billion, depending on intensity.
• The war has driven up inflation by an estimated 0.5 percentage points by early 2027.
• The Pentagon spent $22.3 billion on munitions alone through June 30, with total spending at $33.4 billion.
• The CBO could not estimate the cost of repairing bomb-damaged US bases or future diplomatic and foreign aid costs.

The war in Iran has incurred significant costs for US taxpayers, with the Congressional Budget Office (CBO) estimating at least $38 billion spent over five months and projecting ongoing monthly expenses of $2 billion to $3 billion. The conflict has also severely depleted the US stockpile of defensive missiles, which the CBO stated could take at least five years to rebuild, even with increased production.

The Pentagon's inspector general separately reported that the US spent $22.3 billion on munitions alone through June 30, with total spending reaching $33.4 billion, and noted strategic inventory shortfalls and industrial base bottlenecks for resupply.

According to the CBO report, the depletion of interceptors like Patriot and Thaad would be particularly problematic in a hypothetical conflict over Taiwan, given China's expanding missile arsenal. The report also noted that increased energy costs, driven by disruptions to oil shipments through the Strait of Hormuz, have contributed to inflation, projecting a 0.5 percentage point increase by early 2027.

The CBO's estimate of $38 billion for the first five months is part of a larger supplemental funding request from the White House, which sought $87.6 billion in June, with $67.1 billion earmarked for the Pentagon. The CBO identified $42.3 billion of this request as tied to the Iran conflict, excluding funds for cybersecurity, drones, and classified programs.