US War With Iran Has Cost $38 Billion

The US war with Iran has cost the federal government $38 billion since it began, according to the Congressional Budget Office (CBO), with the monthly bill expected to keep rising. The non-partisan congressional agency published its estimate on Tuesday, covering costs through August.

The CBO warned that even if the intensity of the conflict falls, the cost will continue to rise by around $2 billion a month. If the conflict escalates, the monthly cost could reach $3 billion, according to its analysis.

The estimate includes the cost of ammunition and military equipment used in the conflict, as well as rising fuel expenses for US forces.

The CBO estimates that replacing ammunition already used in the war, which began on February 28, will cost $21.7 billion.

The agency also raised concerns about declining stocks of interceptor missiles. By comparing spending on those missiles with the total number purchased, the CBO estimated that the US had probably used between half and two-thirds of its stockpile since June 2025.

A Pentagon inspector general’s report released on Monday also confirmed ammunition shortages linked to the war, although the administration of US President Donald Trump has repeatedly rejected claims of significant shortages.

Democratic lawmakers requested the CBO analysis.

In July, War Secretary Pete Hegseth said the cost of the war had reached $37.5 billion. Reuters reported that Hegseth had also sought $90 billion in emergency funding to address ammunition shortages.

Inflation and energy impact

The CBO also warned that the war will affect US inflation, largely because disruptions to oil and gas supplies have pushed up energy costs.

Since the conflict began, Iran has closed the Strait of Hormuz, a strategically important route for global energy shipments. The disruption has contributed to higher global oil prices and tighter fuel supplies.

Using the Personal Consumption Expenditures (PCE) price index, the CBO raised its forecast for US inflation in the first quarter of 2027 by 0.5 percentage points compared with its February projection.

The agency also raised its forecast for core inflation — which excludes volatile food and energy prices — by 0.3 percentage points.

The CBO said higher inflation would also put upward pressure on borrowing costs.

(Note: The current figures above reflect the CBO assessment reported on September 15, 2026, rather than the CBO’s earlier general economic projections. 

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