Washington, Sept 2026 : The US military campaign against Iran has cost the Pentagon about $38 billion through August 1 and could require an additional $2 billion to $3 billion every month if hostilities continue, according to a new analysis by the Congressional Budget Office (CBO).
The nonpartisan agency also warned that the conflict has significantly reduced US stocks of missile-defence interceptors, disrupted energy supplies and contributed to higher inflation. The CBO's assessment examined the military, logistical and broader economic consequences of Operation Epic Fury, which began on February 28.
The initial phase of the campaign continued until a ceasefire took effect on April 8. President Donald Trump declared the ceasefire over on July 10 following attacks on tankers travelling through the Strait of Hormuz.
According to the CBO, approximately $21.7 billion of the total military cost was linked to replacing missiles and other munitions. Another $10.4 billion was attributed to additional flying hours, while higher military fuel costs accounted for $2.7 billion. Equipment lost during combat cost an estimated $1.9 billion, with another $1.5 billion spent on other operational requirements.
Munition replacement was the single largest category of expenditure. It included about $13.1 billion for missile-defence interceptors and $7.3 billion for land-attack cruise missiles.
However, the CBO's estimate does not include costs associated with repairing or rebuilding US military facilities damaged during Iranian attacks. It also excludes diplomatic operations, foreign assistance and future medical care and disability compensation for injured service members and veterans.
The agency said the Department of Defense did not provide all the information it had requested. As a result, the CBO relied on government databases and publicly available information, and cautioned that its estimates remain subject to considerable uncertainty.
One of the report's major concerns was the depletion of US missile-defence stocks. The CBO estimated that the United States may have used between one-half and two-thirds of its missile-defence interceptor inventory since June 2025.
Replenishing those stocks could take at least five years, even if the Pentagon accelerates procurement. The CBO warned that the shortage could become particularly significant if the US faced another conflict involving an adversary equipped with large numbers of ballistic and cruise missiles.
The agency specifically pointed to China and its missile arsenal as a potential concern in the event of a conflict involving Taiwan.
The war has also affected global energy markets. Disruptions to oil and natural gas shipments through the Strait of Hormuz, along with interruptions to shipping through the Red Sea, have increased energy costs. The CBO estimated that the rise in energy prices added 2.3 percentage points to the annualised inflation rate during the second quarter of 2026.
The agency projected that inflation in the first quarter of 2027 would be 0.5 percentage points higher than previously forecast because of the conflict. Higher inflation could also contribute to increased interest rates on US Treasury securities.
Defence Secretary Pete Hegseth told Congress in July that operations against Iran were expected to cost $37.5 billion through September. Meanwhile, the White House has sought $87.6 billion in supplemental funding, including $67.1 billion for the Pentagon. The CBO said about $42.3 billion of the Pentagon's requested amount appeared directly connected to the conflict.
The CBO's report highlights the continuing financial and military pressures created by the conflict, particularly the challenge of rebuilding depleted weapons stocks while dealing with broader economic effects.
(Disclaimer :The content of this article is sourced from a news agency and has not been edited by the Mavericknews30 team.)
