The US military campaign against Iran has already created a massive financial burden, with costs reaching $38 billion by August 1. The Congressional Budget Office estimates that expenses could rise by another $2 billion to $3 billion each month.
The conflict has also sharply reduced supplies of key munitions. Consequently, rebuilding some US weapons stockpiles could take at least five years.
Iran War Costs Could Rise Further
The Congressional Budget Office’s assessment covers US Department of Defense costs through August 1, 2026.
The estimate includes spending on munitions, lost equipment, additional flying hours, fuel and other operational requirements.
However, the $38 billion figure does not represent the conflict’s complete financial impact.
The assessment excludes some recent military costs and certain expenses linked to damage at US facilities in the region. It also excludes borrowing costs associated with financing the conflict.
Therefore, the overall financial burden could increase as the conflict continues.
US Weapons Stockpiles Face Years of Replenishment
One of the biggest consequences involves the depletion of American munitions.
The CBO estimates that replacing weapons used during the conflict could cost about $21.7 billion.
The assessment found that US forces have used between half and two-thirds of certain missile interceptor inventories since June 2025.
As a result, rebuilding those depleted inventories could take at least five years, even with efforts to increase production.
The reduced stockpiles could also affect the Pentagon’s ability to respond to another major conflict.
The CBO specifically warned about potential challenges if another conflict involved an opponent with large numbers of ballistic and cruise missiles.
Hegseth Sought Nearly $90 Billion
The growing weapons shortage has already prompted calls for substantial additional funding.
Defence Secretary Pete Hegseth previously sought nearly $90 billion in emergency funding to replenish depleted munitions supplies.
At a Senate hearing, Hegseth said:
“Without these funds, we face critical shortfalls.”
His request came as the Pentagon faced the growing cost of replacing weapons used during the conflict.
War Expected to Push Inflation Higher
The financial effects are not limited to military spending, as disruptions to energy supplies have also affected the wider economy.
The CBO expects the conflict to add about 0.5 percentage points to US inflation during the first quarter of 2027.
Higher energy prices have played a major role in that projected increase.
The Strait of Hormuz remains particularly important because disruptions there can affect global energy shipments and prices.
Consequently, the conflict has created additional pressure on consumers and producers facing higher energy costs.
US Federal Debt Has Also Crossed $40 Trillion
The rising cost of military operations comes as the US faces an already substantial federal debt burden.
US public debt surpassed $40 trillion in August, adding another financial concern as war-related expenses continue to accumulate.
Meanwhile, the CBO’s latest assessment indicates that continuing the conflict could add billions more to the Pentagon’s costs every month.
The CBO estimates monthly costs could remain around $2 billion to $3 billion, depending on the intensity of military operations.
How the Cost Compares With Earlier US Wars
The current financial burden has also revived comparisons with previous major US military campaigns.
The US war in Iraq, which involved more than 100,000 ground troops at its peak, cost about $2 trillion.
The two-decade US conflict in Afghanistan cost about $2.3 trillion, according to the figures cited in the supplied report.
The current Iran conflict is far shorter than those campaigns. However, its growing monthly costs and depleted weapons inventories are creating immediate budgetary and military concerns.
With the conflict continuing, the $38 billion figure represents only the costs counted through August 1. Further operations could push the total substantially higher.
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