U.S. war with Iran has cost $38B and is running at $3B per month, CBO says

Investing.com -- The six-month conflict between the United States and Iran has cost $38 billion through August 1, with expenses projected to grow by $3 billion each month, the Congressional Budget Office said Tuesday. The Trump administration continues to seek ways to end the war and reopen the Strait of Hormuz.

The war is expected to add 0.5% to inflation during the first quarter of 2027, according to the nonpartisan budget office's accounting.

The costs have depleted U.S. munitions stockpiles and pushed energy prices higher, creating concerns about the country's capacity to address other potential conflicts. The expenses also add strain to an already stretched federal budget.

Defense Secretary Pete Hegseth reported similar figures at a Senate hearing on July 21, citing costs of $37.5 billion.

The budget office said most expenses come from the rapid use of munitions. The office estimates it could take five years to rebuild U.S. stockpiles. The U.S. had used nearly all of its long-range precision missiles during the war, according to an August report.

The Department of Defense did not cooperate with congressional financial auditors, the CBO reported. The White House and Department of Defense did not immediately respond to requests for comment.

Representative Brendan Boyle of Pennsylvania, the top Democrat on the House Budget Committee, requested the inquiry.

"Donald Trump's disastrous war in Iran has already taken the lives of brave American servicemembers and left others wounded," Boyle said in a statement. "Beyond that human toll, this nonpartisan CBO report makes clear that the war has also cost American taxpayers tens of billions of dollars and counting, while continuing to drive up costs."

Eighteen U.S. military service members have died in the Iran war.

The report did not include costs from recent strikes on commercial vessels in the Strait of Hormuz and attacks on U.S. military installations in the region. Borrowing expenses related to financing the war, which could add tens of billions of dollars, were also excluded.

The munitions shortage, including missile interceptors, could limit the Pentagon's ability to respond to another major conflict, such as potential hostilities involving China and Taiwan, the CBO said.

At the July Senate hearing, Hegseth requested nearly $90 billion in emergency funding to rebuild munitions supplies. "Without these funds, we face critical shortfalls," Hegseth said.

Attacks in the Strait of Hormuz and on energy facilities in neighboring Gulf countries have sharply increased energy prices. The strait carried roughly 20% of the world's oil before the war began.

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