US war with Iran costs reach $38bn, set to rise by $3bn monthly

The Congressional Budget Office estimates the six-month conflict with Iran has cost the United States $38 billion thus far, with expenses projected to climb by $3 billion each month. The nonpartisan agency issued its assessment on Tuesday, stating that war expenditures are set to reach $41 billion by August 1. The ongoing conflict, now in its sixth month, has depleted US ammunition stockpiles, driving up energy prices and sparking concerns over America's capacity to respond to potential future conflicts.

The Trump administration is currently seeking ways to end hostilities and reopen the Strait of Hormuz. The CBO's calculations, which cover spending up to August 1, also suggest the war could contribute to a 0.5% increase in inflation during the first quarter of 2027. The office warned that most of the war's costs stem from the rapid depletion of munitions, noting it could take five years to replenish US stockpiles.

White House spokesperson Anna Kelly defended President Trump's strikes on Iran as "decisive action" to safeguard US personnel and interests, asserting that the US military possesses "more than enough" munitions and reserves to fulfill the president's strategic goals. The CBO's findings do not encompass the recent strikes on commercial vessels in the Strait of Hormuz or assaults on US military installations in the region, nor do they consider borrowing costs associated with war funding, which could add tens of billions of dollars to the total expense.