The six-month US war against Iran has already cost American taxpayers $38 billion, with expenses expected to climb by another $3 billion every month. The Congressional Budget Office released the nonpartisan assessment on Tuesday, covering costs through early August.
Most of the spending comes from the rapid use of advanced munitions. Officials estimate it could take up to five years to fully restock depleted US stockpiles. Reuters reported earlier that the military had used nearly all of its long-range precision missiles during the conflict. Defence Secretary Pete Hegseth previously told lawmakers the figure stood near $37.5 billion and requested almost $90 billion in emergency funding to rebuild supplies.
The report warns that these shortages could limit America’s ability to respond quickly to another major crisis, such as potential tensions involving China and Taiwan. Eighteen US service members have died in the fighting so far.
Energy markets have also felt the impact. Attacks in the Strait of Hormuz and nearby Gulf energy facilities have pushed oil prices higher, adding pressure on consumers and global producers. The CBO projects the war will raise inflation by about 0.5 percent in the first quarter of 2027.
The accounting does not include every expense. Recent strikes on commercial vessels, attacks on US bases in the region, and the long-term cost of borrowing to finance the war were left out. Those additional factors could add tens of billions more to the final bill. US public debt has already topped $40 trillion.
Top Democrat Brendan Boyle, who requested the study, called the conflict costly in both lives and taxpayer money. The Department of Defence did not cooperate with the auditors, according to the CBO. Neither the White House nor the Pentagon offered immediate comment.
While the administration continues searching for ways to end the conflict and reopen the vital shipping lane, the financial and strategic strain continues to grow.
