US' War on Iran Has Cost Washington Over $38 Billion; Spending Expected to Rise by Up to $3 Billion Monthly

Washington DC: The United States' war against Iran has cost the Department of Defense more than $38 billion through August 1, and will continue costing up to $3 billion a month or more depending on the intensity of the conflict, according to an assessment released Tuesday by the nonpartisan Congressional Budget Office.

The CBO's estimate covers direct costs from the campaign the US and Israel launched against Iran since February 28, and do not include costs related to US military personnel killed or injured in the conflict ordoes not include the expense of repairing American bases in the region that were damaged in Iranian counterattacks across Kuwait, Bahrain, Qatar, the UAE, Saudi Arabia, Iraq, Oman and Jordan. Munitions accounted for most of the spending, with the depletion of interceptor missiles used to defend against incoming fire leaving behind reduced stockpiles that officials say could take years to rebuild. A Pentagon inspector general report released a day earlier reached a similar conclusion, warning of "strategic inventory shortfalls."

The budget office also warned the war is likely to keep inflation elevated into early 2027, adding roughly half a percentage point above earlier projections, driven largely by disrupted oil and gas shipments through the Strait of Hormuz and the Red Sea.

The White House had requested $87.6 billion in supplemental funding in June, mostly for the war effort, but Congress has yet to approve it. The CBO noted that the portion of that request tied directly to the conflict, $42.3 billion, runs about 10 percent higher than its own cost estimate. The Pentagon did not respond to the budget office's request for information, a departure from normal practice, according to reports.