Iran war costs U.S. Department of Defense $38 billion through August

The Congressional Budget Office (CBO) estimates that the U.S. Department of Defense spent approximately $38 billion on the war with Iran through August 1. The largest portion of this expenditure, roughly $21.7 billion, was dedicated to replacing munitions, including $13.1 billion for missile-defense interceptors. Other costs included equipment losses, increased fuel use, and higher flying hours.

Depending on the intensity of hostilities, the CBO warns that monthly Pentagon costs could range from $2 billion to $3 billion. Continued conflict poses significant economic risks, including potential global recession warnings from the International Monetary Fund and disruptions to energy, transportation, and food prices due to the closure of the Strait of Hormuz.

While the U.S. military spending is substantial, the economic damage to Iran is estimated at as much as $300 billion. The conflict continues to cause geopolitical shifts across the Middle East, affecting regions such as Yemen, Iraq, Lebanon, and Syria.