According to a report from the Congressional Budget Office (CBO), the U.S. war with Iran has incurred costs of approximately $38.1 billion through August 1, with projections suggesting an additional $2 billion to $3 billion for each month of continued conflict. The majority of these expenses stem from replacing munitions, which accounted for over half of the total costs.
Increased operational flying hours contributed another $10.4 billion, while rising fuel prices added $2.7 billion. The war has also significantly impacted missile inventories, consuming up to two-thirds of the nation's missile-defense interceptors since June 2025, primarily due to U.S. support for Israel against Iranian threats.
The CBO warns that replenishing these interceptors could take at least five years, even with increased production. The financial implications of the war are becoming a focal point in the upcoming elections, with Democrats highlighting the rising costs of fuel and consumer goods linked to the conflict.
The CBO estimates that by early 2027, the war will have raised inflation by 0.5 percentage points, with energy costs being a major contributor. As of now, U.S. crude oil prices have surpassed $106 per barrel, and gasoline prices have risen to an average of $4.33 per gallon nationally.
The Pentagon's own estimates align closely with the CBO's findings, indicating a total cost of $33.4 billion as of late June, which includes significant losses in military equipment and infrastructure damage across multiple Middle Eastern countries. The ongoing conflict raises concerns about the U.S. military's operational capacity and the broader economic impact on consumers