Iran War could cost $2 billion per month, Congressional Budget Office estimates

The Congressional Budget Office (CBO) estimates the war with Iran could cost the U.S. approximately $2 billion to $3 billion monthly, potentially escalating as the conflict intensifies. From February to August, the war has directly cost the U.S. around $38 billion, excluding repairs to U.S. bases in the region. The majority of costs stem from munitions replacement, with interceptor missiles leaving behind a depleted inventory for years, especially concerning against opponents like China with large ballistic and cruise missile arsenals.

Replacing munitions used in the conflict up to August 1 is estimated at $21.7 billion, including $7.3 billion for land-attack cruise missiles, $13.1 billion for missile-defense interceptors, and $1.2 billion for other munitions. Despite concerns from the White House and Pentagon about ample ammunition reserves, the CBO highlights the strategic inventory shortfalls and industrial base bottlenecks in munitions resupply, identified by the Pentagon's Office for Acquisition and Sustainment.

Additional costs include replacing lost equipment, such as a THAAD air defense radar destroyed by Iran, potentially amounting to $1.9 billion to $3.3 billion if newer versions are procured. If the war remains at a low intensity, monthly costs are projected to range from $2 billion to $3 billion, with potential escalation to $2 billion to $3 billion per month following the intense July clashes.

The CBO's estimate responds to Democratic Rep. Brendan Boyle's request, underscoring the financial burden and human toll of the war, as Congress debates $73 billion in new funding through the reconciliation process, currently stalled in the Senate.