Iran war hits US budget: Invoice 38 billion dollars

The ABD Congress Budget Office (CBO) released a comprehensive analysis that reveals the impact of Washington's war with Iran on the national economy and the Savunma Bakanlığı budget. According to the report, the direct cost to ABD as of 1 August 2026 reached about 38 billion dollars. It was noted that if the conflict continues, the cost could rise by about 2 to 3 billion dollars each month.

Arms Expenditures Make Up the Bulk of the Cost

According to the CBO's assessment, the renewal of used munitions accounts for a significant portion of the war's direct costs. Additionally, equipment losses, fuel, and extra military personnel expenses were also included in the total spending.

The report noted that ABD's munitions stocks had fallen significantly and that rebuilding the existing inventory could take at least five years.

The Impact on Inflation Was Also Calculated

The CBO foresees that the war's economic effects will extend beyond defense spending. According to the agency, the conflict is also putting pressure on prices, especially due to disruptions in transportation and energy flows in the Hürmüz Boğazı and Kızıldeniz.

The CBO estimates that the war could raise inflation by about 0.5 percentage points in the first quarter of 2027.

Some Costs Were Not Included in the Calculation

The roughly $38 billion figure announced by the CBO does not cover the war’s entire economic bill. It was noted that costs associated with damage to some military facilities were omitted from the calculation due to uncertainty. Debt‑service costs that could arise from financing the war are also excluded from this amount.

Thus the CBO views the announced $38 billion figure as the lower bound of the war’s total cost.

The report was prepared at the request of Brendan Boyle.

The CBO’s analysis was prepared at the request of Democratic member Brendan Boyle of the House Budget Committee. In a statement about the report, Boyle argued that the war imposes an additional burden of billions of dollars on U.S. taxpayers.

The U.S. administration, on the other hand, is looking for ways to end the conflict and to secure the commercial crossings in the strategically important Strait of Hormuz again.

According to the CBO's calculations, if the conflict continues at its current intensity, Pentagon spending could rise by an additional $2 to $3 billion each month.