Key facts
- The six-month-old U.S. war against Iran has cost $38 billion so far, projected to rise by $3 billion a month.
- The war is expected to increase inflation by 0.5% in the first three months of 2027.
- The majority of the war's costs stem from the rapid drawdown of munitions, with replenishment potentially taking five years.
- Eighteen U.S. military service members have died in the Iran war.
- The war's deficit in critical munitions risks hampering the Pentagon's response in the event of another major conflict.
- The nation's total public debt surpassed $40 trillion in August.
The six-month-old U.S. war against Iran has cost $38 billion so far and is projected to rise by $3 billion a month, according to a report from the Congressional Budget Office (CBO). The war's expenses, totaling through August 1, have strained U.S. munitions stockpiles and driven up energy prices, raising concerns about the country's ability to respond to other potential conflicts and adding pressure to the federal budget.
The CBO's accounting found that the majority of the costs stem from the rapid drawdown of munitions, estimating that it could take five years to replenish U.S. stockpiles. Reuters reported in August that the U.S. had used "virtually all" of its long-range precision missiles during the war. The report did not include costs of recent strikes on commercial vessels in the Strait of Hormuz or attacks on U.S. military installations, nor did it factor in borrowing expenses.
Defense Secretary Pete Hegseth had previously reported a cost close to $37.5 billion at a Senate hearing on July 21. He had pleaded for nearly $90 billion in emergency funding legislation to restock munitions supplies, warning of critical shortfalls without the funds. The war is also expected to increase inflation by 0.5% in the first three months of 2027. Eighteen U.S. military service members have died in the Iran war.
Brendan Boyle, the top Democrat on the U.S. House of Representatives Budget Committee, who requested the inquiry, stated that the war has cost American taxpayers tens of billions of dollars and continues to drive up costs, in addition to the human toll.