$38 Billion and Rising: The Staggering Cost of the US-Iran War
The US war with Iran has cost around $38 billion in the six months to August 1, according to the Congressional Budget Office (CBO). The CBO estimates that this cost will rise by as much as $3 billion a month for as long as the conflict continues.
The majority of these costs stem from the rapid use of ammunition. The CBO warns that it could take up to five years to replenish some ammunition stockpiles, which is putting pressure on US supplies and driving up energy prices.
The war has also led to increased inflation, with the CBO estimating a 0.5% increase in US inflation by the first three months of 2027. White House spokeswoman Anna Kelly defended President Trump's attacks on Iran as a 'decisive action' to prevent Tehran from endangering US personnel or interests.
The cost of borrowing to finance the war is not included in this calculation, and the CBO estimates that this component could add tens of billions of dollars to the total cost. The report also notes that shortages of critical ammunition could limit the Pentagon's ability to respond to another major conflict.