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

The US war on Iran has cost $38 billion so far, according to the Congressional Budget Office. This amount is projected to rise by $3 billion a month. The war, which began in February and the CBO accounting covered through August 1, is expected to increase inflation by 0.5 percent in the first three months of 2027.

The mounting costs have strained US munitions stockpiles and driven up energy prices, adding pressure on an already stretched federal budget. The CBO estimates that replacing munitions used in the war accounts for most of the total cost, with $21.7 billion needed to replace those used through August 1. This includes $7.3 billion for land-attack cruise missiles, $13.1 billion for missile-defense interceptors, and $1.2 billion for other munitions, as per CBS News.

The rapid drawdown of munitions has raised concerns about the country's ability to respond to other potential conflicts. According to The Korea Times, it could take five years to replenish US stockpiles. The CBO also noted that the large expenditure of interceptor missiles used to defend against incoming missiles leaves behind a reduced inventory of interceptors for several years, which could be problematic if a conflict arose with an opponent with a large arsenal of ballistic and cruise missiles.

Brief written by urgent.news from Middle East Eye, The Korea Times, CBS News — 3 reports on this story. Machine-written — may contain errors; check the original before relying on it.