$38 Billion Price Tag for US Military Conflict with Iran: Monthly Costs Could Rise to $3 Billion

The US military conflict with Iran has cost the Department of Defence about $38 billion so far, according to a new Congressional Budget Office (CBO) assessment. This figure covers operational, logistical and sustainment expenses, including the replacement of weapons and equipment lost in combat, increased flying hours and higher fuel costs.

The CBO warned that the financial impact could continue to grow depending on the intensity of the fighting. If the conflict remains at a lower level of violence seen in May and June, another month could cost about $2 billion, while if combat returns to the intensity recorded in July, monthly costs could reach $3 billion or more.

The economic consequences are extending beyond direct military expenditure, with disruptions caused by the conflict pushing US inflation 0.5 percentage points higher during the first three months of 2027. The CBO also assessed the effects of increased energy prices resulting from disruptions to oil and gas supplies and transport, particularly around the Strait of Hormuz.