The United States has spent an estimated $38 billion on its ongoing war with Iran over the past six months, with costs projected to increase by about $3 billion monthly, according to a new report by the Congressional Budget Office (CBO).
The report, cited by Reuters, comes as the administration of President Donald Trump explores options to end the conflict and restore normal operations in the strategic Strait of Hormuz, a critical global oil shipping route.
According to the CBO, the war is expected to contribute to a 0.5 per cent rise in inflation during the first quarter of 2027. The report estimates that a significant portion of the spending has been driven by the rapid depletion of U.S. military munitions and the impact of rising global energy prices.
The cost estimate closely aligns with the $37.5 billion figure disclosed by Defense Secretary Pete Hegseth during a Senate hearing in July.
The budget office warned that replenishing depleted U.S. weapons stockpiles could take as long as five years. Reuters had earlier reported that the military had expended most of its long-range precision missiles during the conflict.
Despite the findings, the White House and Pentagon strongly disputed suggestions that the military is facing critical shortages.
White House spokeswoman Anna Kelly described President Trump’s military operations against Iran as decisive actions aimed at protecting American personnel and interests. She maintained that the U.S. military retains sufficient weapons and ammunition to meet all operational requirements.
Chief Pentagon spokesperson Sean Parnell also rejected claims of shortages, insisting that the military possesses all the capabilities required to strike targets whenever necessary.
The inquiry into the war’s costs was requested by Brendan Boyle, the ranking Democrat on the House Budget Committee. Boyle criticized the conflict, arguing that it had claimed American lives while imposing a growing financial burden on taxpayers.
At least 18 U.S. service members have been killed since the conflict began.
The report did not include costs associated with recent attacks on commercial vessels in the Strait of Hormuz or strikes on U.S. military facilities in the region. It also excluded borrowing costs related to financing the war, which analysts believe could add tens of billions of dollars to the overall expense.
The CBO warned that shortages of key military assets, including missile interceptors, could hamper Washington’s ability to respond to future conflicts, particularly in other strategic regions.
Meanwhile, the Pentagon’s Inspector General reported that Iranian attacks had damaged or destroyed hundreds of structures at U.S. military installations across the Middle East, as well as aircraft including fighter jets, refueling planes and drones.
The conflict has also intensified pressure on global energy markets. Attacks affecting the Strait of Hormuz, through which around 20 per cent of the world’s oil supply previously passed, have pushed fuel prices higher and added strain to global economies.
The financial burden comes as U.S. public debt surpassed $40 trillion in August, raising concerns about the long-term fiscal impact of the conflict.
