US war with Iran has cost $38 billion, CBO estimates

The six-month United States war with Iran has cost about $38 billion and could add roughly $3 billion a month to federal spending if the conflict continues, according to an assessment by the nonpartisan Congressional Budget Office.

The CBO said the conflict could lift US inflation by about 0.5 percentage points during the first three months of 2027. Its accounting covers costs through August 1 and does not include some more recent attacks or the additional borrowing costs associated with financing the war.

A major part of the bill comes from the rapid use of US munitions. The budget office estimated that rebuilding depleted stocks could take five years, raising concerns about military readiness should Washington face another major conflict.

The report also points to wider economic consequences from disruption in the Strait of Hormuz and attacks on energy infrastructure in Gulf countries, which have pushed up energy costs. The waterway carried roughly a fifth of global oil before the conflict.

Eighteen US military personnel have died in the war. The CBO assessment was prepared at the request of Brendan Boyle, the senior Democrat on the House Budget Committee. The White House and Department of Defense did not immediately respond to Reuters requests for comment.

Source: Reuters, 15 September 2026. Read the original report.

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