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The ongoing war in Iran has cost the United States approximately $246 million per day during its first five months, according to a report released by the nonpartisan Congressional Budget Office (CBO) on Tuesday (September 15). The report estimates that the conflict has cost the U.S. over $38 billion from late February to early August, with potential costs of up to $3 billion for each additional month.
A significant portion of the expenses, more than half, comes from replacing munitions used in the fighting. The CBO report highlights that the war has driven up global fuel prices, contributing to inflationary pressures. The disruption of shipping through the Red Sea and reduced oil and gas shipments via the Strait of Hormuz have exacerbated these effects. As a result, the CBO projects inflation to be 0.5 percentage points higher in the first quarter of 2027 than previously estimated.
The Pentagon reported to Congress that the cost of the war had surpassed $42 billion by August 13, according to The Hill. Defense Secretary Pete Hegseth previously estimated the cost at $37.5 billion. The CBO's report also notes that the U.S. has expended significant resources on missile defense interceptors, resulting in reduced inventory levels for several years.
The conflict has also caused extensive damage to U.S. diplomatic facilities in the Gulf region, with an estimated $184 million in damages from Iranian strikes, according to the Pentagon's watchdog. Despite these challenges, President Trump and Defense Secretary Hegseth have stated that the U.S. maintains sufficient weapons stockpiles.
The war's financial burden has prompted criticism from lawmakers, including Senator Elizabeth Warren, who called the conflict "a betrayal of the American people" and urged for its end. Meanwhile, the Iran Cost Ticker estimates that the war cost U.S. taxpayers $113.3 billion over the first 108 days, highlighting the ongoing financial impact.