U.S. Conflict With Iran Costs $38 Billion, CBO Report Shows
A CBO report reveals the U.S. conflict with Iran has cost $38 billion, depleting interceptors and driving inflation, with monthly expenses continuing to climb.
Cost of U.S. Military Conflict with Iran Reaches $38 Billion
The cost to the United States of the military conflict with Iran reached $38 billion as of August 1, and could rise by $2 billion to $3.8 billion for every additional month of fighting, according to a report published today by the nonpartisan Congressional Budget Office (CBO). This represents an average daily cost of nearly $247 million.
CNBC reported that more than half of the expense stemmed from restocking missiles and other munitions. According to the CBO, the cost of additional flight hours totaled about $10.4 billion, while higher fuel prices resulting from Iran's closure of the Strait of Hormuz added another $2.7 billion.
Depletion of Interceptors and Strategic Impact
The CBO report indicates that the conflict has consumed up to two-thirds of U.S. interceptor stockpiles since June 2025, partly due to U.S. assistance in defending Israel from Iranian attacks.
Replenishing the Department of Defense's inventory of interceptors will likely take at least five years—even if production rates are increased.
The report warns that missile shortages could become particularly problematic in a conflict against an adversary possessing large numbers of ballistic and cruise missiles, such as a potential clash with China over Taiwan.
Economic and Inflationary Pressures
The conflict has also driven up consumer prices due to the closure of the Strait of Hormuz, which curtailed oil and gas shipments and disrupted maritime trade. The CBO estimates that by the first quarter of 2027, the war will increase annualized inflation by 0.5 percentage points, as measured by the Personal Consumption Expenditures (PCE) price index—the Federal Reserve's preferred gauge.
The devastating war by Donald Trump on Iran has already claimed the lives of brave American service members and left others wounded. Beyond the human toll, this CBO report makes clear that the conflict has cost American taxpayers tens of billions of dollars, and the costs continue to mount, said senior House Budget Committee Democrat Brendan Boyle of Pennsylvania.
