Iran war costs US $38bn, congressional report says
The Congressional Budget Office says the conflict could add $3bn a month, lift inflation in early 2027 and take up to five years to replenish munitions stocks.
The six-month US war on Iran has cost $38bn and could require a further $3bn a month, according to a report from the nonpartisan Congressional Budget Office.
The CBO estimates the conflict could increase US inflation by 0.5 percentage points during the first three months of 2027. The projection comes as disruption to global energy markets has contributed to rising prices.
The report also estimates that replenishing US munitions stockpiles could take up to five years. It does not include borrowing costs associated with the war or Iranian attacks on US military installations in the Middle East.
The estimate is broadly in line with Defence Secretary Pete Hegseth’s congressional testimony in July, when he put the cost at $37.5bn. Hegseth has urged Congress to approve a substantial increase in the US military budget.
The CBO report follows a Pentagon inspectors-general report that detailed munitions shortfalls, production bottlenecks and the loss of dozens of US aircraft. The Trump administration has denied reports of depleted stockpiles, while Pentagon spokesperson Sean Parnell said the US had everything required to strike when directed.
