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[INTERNATIONAL] · United States, Iran · 12 sources

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US military conflict with Iran costs $38 billion

The United States' military conflict with Iran has reached an estimated cost of $38 billion as of August 1, 2026, according to reports from the Congressional Budget Office (CBO). The conflict, which began in late February, is projected to continue costing between $2 billion and $3 billion per month.

Major expenditures include approximately $22.7 billion for replacing munitions and equipment, $10.4 billion for increased flight hours, and $2.7 billion due to rising fuel costs. The CBO warns that the rapid drawdown of munitions has created a strategic deficit, noting that it could take at least five years to replenish interceptor missile stockpiles.

Beyond direct military spending, the conflict is expected to impact the broader U.S. economy by increasing inflation by roughly 0.5% through the first quarter of 2027, driven largely by energy market disruptions in the Strait of Hormuz.

Additionally, a Pentagon Inspector General report revealed that Iranian attacks have damaged or destroyed hundreds of buildings and structures at U.S. bases across several Middle Eastern nations, including Kuwait, Bahrain, Qatar, the UAE, Saudi Arabia, Iraq, Oman, and Jordan. The report also noted the loss or damage of dozens of aircraft, including MQ-9 Reaper drones and F-15 fighter jets.

Entities

Brendan Boyle · Congressional Budget Office · Donald Trump · Iran · Pete Hegseth · Strait of Hormuz · United States Department of Defense

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