Iran War Costs Hit $38 Billion, Could Rise by $3 Billion a Month

The U.S. war with Iran has cost the Department of War $38.1 billion through Aug. 1 and could add between $2 billion to $3 billion for each additional month of fighting depending on the level of violence, according to a report from the Congressional Budget Office (CBO).

The budget agency said the $38.1 billion estimate includes replacing missiles and other munitions, replacing equipment lost in battle, additional aircraft operations, and higher fuel costs.

If fighting remains at the relatively low levels recorded in May and June, the conflict would cost approximately $2 billion per month, CBO said. Operations at the higher intensity recorded in July would cost about $3 billion per month, while further escalation could push monthly costs higher.

CBO said the war has contributed to higher inflation by disrupting oil shipments through the Strait of Hormuz and shipping through the Red Sea, raising the costs of energy, transportation, and other goods and services.

Replacing munitions was the biggest cost for the military at $21.7 billion, according to the CBO report. That included $13.1 billion for missile-defense interceptors and $7.3 billion for land-attack cruise missiles.

The U.S. military has probably used between one-half and two-thirds of its inventory of missile defense interceptors since June 2025, the CBO report estimated. That reduction in inventory of missile defense interceptors would be “relevant” if the United States were to get into a potential conflict with China, which the report said has “many more ballistic and cruise missiles than Iran had at the onset of Operation Epic Fury.”

“Donald Trump and Republicans have spent years telling Americans that we cannot afford to help families here at home, but apparently they can find tens of billions of dollars, and potentially much more, for a reckless war that is leaving Americans to pay the price.”

The White House didn’t respond to an email seeking comment.

Trump has defended the war despite the costs. In April, he posted a link to a New York Post article and commented, “Democratic pollster: Benefit of defanging Iran far outweighs cost of war.”

Trump said in a post on Truth Social that any damages Iran inflicts on ships or cargo would be paid for with Iranian money that is controlled by the United States.

“These damages may be very substantial but, nevertheless, this is the fair and equitable thing to do,” Trump said.