Iran war has cost the U.S. more than $38B, budget office says

(AP) — The U.S. war against Iran has cost the Department of Defense more than $38 billion through Aug. 1, and will continue costing up to $3 billion a month or more depending on the intensity of the conflict, according to an assessment released Tuesday by the nonpartisan Congressional Budget Office.

CBO said the war is expected to contribute to inflation into the first quarter of 2027, making inflation roughly 0.5 percentage points higher than they had previously estimated. That’s driven largely by the reduction of oil and natural gas shipments through the Strait of Hormuz and disruptions to shipping through the Red Sea.

The estimate, prepared in response to a request for information from the top Democrat on the House Budget committee, Rep. Brendan Boyle, largely aligns with a previous estimate from Defense Secretary Pete Hegseth, who pinned the costs at $37.5 billion, according to his Senate testimony.