Iran war cost hits US$38bil, forecast to rise US$3 billion a month

The six-month US conflict with Iran has cost the United States $38 billion, with the figure forecast to increase by $3 billion monthly, according to a nonpartisan Congressional Budget Office (CBO) report. This mounting expense is straining munitions stockpiles and raising energy prices, potentially hindering the Pentagon's response to future conflicts and putting pressure on the already stretched federal budget.

The war's costs have already reached nearly $37.5 billion, reported by Defense Secretary Pete Hegseth in a Senate hearing. The majority of the expenses are attributed to the rapid depletion of munitions, with replenishment estimated to take five years. The US has reportedly used nearly all of its long-range precision missiles in the war, and the Pentagon has not cooperated with congressional financial auditors.

While the CBO report did not include costs of recent strikes on commercial vessels in the Strait of Hormuz or attacks on US military installations, it projected the war could raise inflation by 0.5% in the first quarter of 2027. Eighteen US military personnel have lost their lives in the conflict. The report also warned that the war could have broader implications for the US defense posture and domestic economy, potentially hampering the Pentagon's response to conflicts involving China and Taiwan.