Iran war has cost the US more than $38B, budget office says, tell me about this news in (https://www.denverpost.com/2026/09/15/iran-war-costs-cbo/)
15-09-2026
According to a report released on September 15, 2026, by the nonpartisan Congressional Budget Office (CBO), the armed conflict involving Iran has cost the U.S. Department of Defense roughly $38 billion through August 1, 2026.Key Details from the Report
- Cost Breakdown:
- Expended Munitions: Approximately $21.7 billion to replace expended weapons and precision munitions.
- Flight Operations: $10.4 billion resulting from increased military flying hours and sortie rates.
- Fuel Expenses: $2.7 billion driven by increased operational tempo and elevated fuel prices.
- Combat Losses: $1.9 billion to account for military equipment damaged or lost in combat operations.
- Other Operations: Roughly $1.5 billion in other operational and sustainment expenditures.
- Projected Ongoing Spending:
- The CBO estimates that ongoing operations will cost an additional $2 billion to $3 billion per month, with costs expected to rise higher if conflict intensity escalates.
- Severe Stockpile Depletion:
- A major concern highlighted in the analysis is the depletion of U.S. missile-defense interceptors. The CBO estimates that between 50% and 66% (one-half to two-thirds) of key interceptor inventories have been used since mid-2025.
- Replenishing these critical stockpiles is expected to take at least five years, even under expanded production schedules.
- Broader Economic Impacts:
- Disrupted shipping routes through the Red Sea and restricted energy transit across the Strait of Hormuz have pushed fuel and transport costs higher. The CBO projects this will leave headline PCE inflation about 0.5 percentage points higher in early 2027 than previously forecast.
- Context and Scope:
- The $38 billion figure closely tracks testimony from Defense Secretary Pete Hegseth, who cited approximately $37.5 billion during a congressional hearing in July.
- The CBO emphasized that this assessment primarily covers direct Department of Defense operational costs. It does not account for secondary borrowing costs, domestic base repairs, or broader foreign aid and diplomatic expenses.