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

The Congressional Budget Office (CBO) has forecast that the six-month-long U.S. war against Iran has cost $38 billion so far, with the expense anticipated to increase by $3 billion each month. This projection was reported on Tuesday by the nonpartisan budget keepers. As the Trump administration seeks ways to end the conflict and restore the crucial Strait of Hormuz, the war is expected to raise inflation by 0.5 percent in the initial three months of 2027, according to the CBO's accounting, which covered expenditures up to August 1.

The escalating costs have put pressure on U.S. munitions stockpiles and gasoline prices, prompting worries about the nation's capability to handle other possible conflicts and adding stress to an already constrained federal budget. The figure is almost identical to the $37.5 billion reported by Defense Secretary Pete Hegseth at a Senate hearing on July 21.

The majority of the expenses are attributed to the swift drawdown of munitions, with the CBO estimating it might take five years to replenish U.S. stockpiles. Reuters noted in August that the U.S. had utilized almost all of its long-range precision missiles in the ongoing war.