Iran war cost hits $38 billion, forecast to rise $3 billion a month, CBO says

The Congressional Budget Office (CBO) has reported that the United States has spent $38 billion on its ongoing war against Iran, with costs projected to increase by $3 billion per month. This forecast was released on Tuesday, as the Trump administration seeks solutions to end the conflict and reopen the crucial Strait of Hormuz. According to the CBO's accounting through August 1, the war is expected to elevate inflation by 0.5 percent in the first three months of 2027, according to the report.

The rising costs have put a strain on U.S. munitions stockpiles and contributed to a surge in energy prices, raising concerns about the nation's capacity to handle other potential conflicts. Additionally, the mounting expenses are putting pressure on an already burdened federal budget. The figure is nearly identical to the $37.5 billion reported by Defense Secretary Pete Hegseth during a Senate hearing on July 21.

The CBO explains that the majority of the expenses are attributed to the swift reduction of munitions, estimating that it could take up to five years to replenish U.S. stockpiles. Reuters had previously reported in August that the U.S. has utilized nearly all of its long-range precision missiles in the war against Iran.