Iran war costs US military $38 billion as CBO warns of billions more in monthly expenses
The CBO said the estimate largely reflects the cost of replacing munitions expended during the conflict and equipment lost in battle, along with higher fuel costs for the US military and other expenses.
The US war against Iran has cost the Department of Defense over $38 billion through August, with monthly expenses potentially reaching an additional $2-$3 billion depending on the intensity of fighting, according to the nonpartisan Congressional Budget Office (CBO) on September 15. The conflict's broader economic impact is being felt through higher inflation, primarily due to disruptions to oil and natural gas shipments, with Iran's retaliation including the blocking of the Strait of Hormuz.
Inflation projections for the first quarter of 2027 are expected to be about 0.5 percentage points higher than previously forecast, potentially leading to increased interest rates on US Treasury securities. The CBO's estimate, which does not include costs related to military personnel killed or injured, or longer-term veterans' healthcare and disability compensation, was prepared following a request from Rep. Brendan Boyle and other Democratic lawmakers.
The analysis, which aligns with a previous assessment by Defense Secretary Pete Hegseth, highlights concerns about US military stockpiles, with a Pentagon inspector general report noting "strategic inventory shortfalls" due to the war.
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- The US fired over $22 billion in munitions fighting Iran and created stockpile shortages in the process, watchdog finds businessinsider.com
- Iran war cost hits $38 billion, forecast to rise $3 billion a month, CBO says dailymaverick.co.za
- Iran War could cost $2 billion per month, Congressional Budget Office estimates cbsnews.com
- Iran war cost hits $38 billion, forecast to rise $3 billion a month, CBO says koreatimes.co.kr
- Iran war has cost on average $246 million per day in its first five months, CBO finds cnbc.com
- $33.4bn war cost, $22.3bn on munitions: What US lost in 6 months of Iran war timesofindia.indiatimes.com
