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Iran war cost hits $38 billion, forecast to rise $3 billion a month, CBO says

The estimate includes munitions replacements, equipment losses and higher fuel costs, and CBO says inflation could rise 0.5 percentage points in early 2027.

  • On Tuesday, the Congressional Budget Office reported the six-month U.S. war against Iran has cost about $38 billion, with expenses projected to rise by around $3 billion a month if the conflict continues.
  • Launched on February 28, the conflict has placed a significant financial burden on the Pentagon, driven primarily by the rapid drawdown of munitions and equipment losses sustained during operations.
  • Pentagon estimates placed costs at $33.4 billion as of June 29, including $7.4 billion in operating expenses and $22.3 billion to replace munitions; the Defense Department watchdog warned of "strategic inventory shortfalls."
  • Rising energy prices from Strait of Hormuz and Red Sea disruptions are expected to increase inflation by 0.5% in early 2027, according to the CBO, straining an already stretched federal budget.
  • Rebuilding missile-defense interceptors could take at least five years, the CBO warned, leaving the U.S. with reduced inventories that could prove "especially problematic" in conflicts with adversaries like China.
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CNBC broke the news in Englewood Cliffs, United States on Tuesday, September 15, 2026.
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