Iran war costs reach $38B as inflation, supply risks mount

The United States has incurred at least $38 billion in direct war costs with Iran by the end of July, according to the Congressional Budget Office (CBO). The CBO report warns that the conflict's financial impact could worsen inflation for American households, with additional monthly costs ranging from $2 to $3 billion. The depletion of weapon stocks is another major concern, as the Pentagon could struggle to rebuild its arsenal for at least five years, potentially crippling its response to future conflicts.

The report highlights that depleted inventories of missiles and anti-air defense weapons could make it difficult to counter adversaries with large missile arsenals. Despite the Pentagon's assertions of readiness, the CBO's assessment suggests a shortage of critical munitions, including Patriot and SM-6 interceptors. Additionally, the war has depleted U.S. inventories of various weapons, leaving fewer munitions available for future major conflicts.

The report emphasizes that the Pentagon did not cooperate with the analysis or provide requested information, emphasizing the financial and military consequences that will persist beyond the fighting.