# US Iran war costs hit $38 billion and climbing, CBO says

> Congressional Budget Office warns monthly costs could reach $3 billion as conflict continues with no end in sight.
- Title: US Iran war costs hit $38 billion and climbing, CBO says
- Summary: Congressional Budget Office warns monthly costs could reach $3 billion as conflict continues with no end in sight. The US has spent $38 billion on the Iran…
- Keywords: united states, iran, war costs, congressional budget office, cbo, defense spending, military conflict, pete hegseth, brendan boyle, strait of hormuz, oil prices, inflation
- Source: Malay Mail — https://malaymail.com/news/world/2026/09/16/us-faces-billions-more-in-iran-war-costs-as-conflict-drags-on-cbo-warns/235375
- Published: 2026-09-16T09:47:29+00:00
- Read time: 1 min
- Topics: united states, iran, war costs, congressional budget office, cbo, defense spending, military conflict, pete hegseth, brendan boyle, strait of hormuz, oil prices, inflation
## War costs hit $38 billion
The US military conflict with Iran has cost approximately $38 billion as of August 1, 2026. The war began after US-Israeli strikes targeting Iran in late February.
## Billions more each month ahead
Depending on the intensity of violence, costs could range between $2 to $3 billion or more per month if the conflict continues.
## Munitions replacement tops spending
Replacing expended munitions has cost $21.7 billion, making it the largest single component of Defense Department expenses in the conflict.
## Missile defense inventory depleted
The US has probably used between half and two-thirds of its missile defense interceptor inventory since June 2025, leaving reduced stocks for several years.

> has probably used between one-half and two-thirds of its inventory of those munitions since June 2025
## Iran blocked critical oil route
Iran retaliated by blocking the Strait of Hormuz, a critical waterway for oil shipments, sending energy costs soaring worldwide.
## Inflation pressure mounting
The main economic impact has been inflationary pressure from oil and natural gas disruptions caused by the conflict.
## Prices rising faster than forecast
Inflation in the first quarter of next year is now estimated to be 0.5 percentage points higher than February projections. Core inflation will also be 0.3 points higher.
## Key takeaway

The US has spent $38 billion on the Iran war through August 2026, with costs potentially adding $2-3 billion monthly as the conflict drags on.