‘Iran war costs US $45.1 billion’, surpassing Pentagon’s $38 billion estimate: Report
The $45.1 billion cost estimate from the Pentagon surpasses the $38 billion price tag the Congressional Budget Office (CBO) projected the war cost through August 1.
The Pentagon disclosed on Friday that the US war with Iran has cost a staggering $45.1 billion, surpassing previous estimates and estimates from the Congressional Budget Office (CBO). The human and material expenses related to the conflict exceeded the Pentagon's initial $38 billion projection in July and increased further to $43.6 billion by September 3.
The additional $1.5 billion allocated for supplementary fuel expenses did not incorporate installation repairs or broader operational costs. The CBO estimated the conflict to have cost the Department of Defense approximately $38 billion as of August 1, 2026, encompassing costs related to munitions and equipment replacement, increased flying hours, operations, and fuel expenses.
The CBO further projected that the war will continue to incur monthly costs of around $2 billion to $3 billion post-August 1, with higher costs expected if the violence escalates further. The conflict's economic impact is primarily attributed to inflationary pressures caused by reduced oil and natural gas shipments through the Strait of Hormuz and disrupted shipping via the Red Sea, leading to higher global energy prices.
As a result, the CBO anticipates inflation to be 0.5 percentage points higher than previously projected in the first quarter of 2027.
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