US-Iran War Costs Reach $45 Billion, Surpassing Pentagon Estimates

The war between the US and Iran has cost an estimated $45.1 billion, surpassing the Pentagon's initial estimate of $38 billion. According to a recent report by the Congressional Budget Office (CBO), this total includes expenses for replacing expended munitions and equipment lost in battle, increased flying hours, other operations, and higher fuel costs. The CBO had previously estimated that the war would cost around $38 billion through August 1.

The Pentagon's updated estimate of $45.1 billion takes into account additional costs, including supplementary fuel requirements, which amount to $1.5 billion. This figure is higher than the $37.5 billion initially estimated by the Pentagon in July.

The war's economic impact extends beyond military expenses, with inflation projected to increase due to reduced oil and natural gas shipments through the Strait of Hormuz and disruptions to shipping in the Red Sea. The CBO estimates that this will lead to higher energy prices globally, putting upward pressure on consumer prices.