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US Iran war has cost Pentagon more than $38 billion
The Hindu··16 Sept
The US war against Iran has cost the Department of Defence more than $38 billion through August 1, the Congressional Budget Office said on September 15. CBO expects up to $3 billion a month in ongoing costs. It said the war could lift inflation by about 0.5 percentage points into early 2027, citing Hormuz and Red Sea shipping disruptions.
Prism
What It Means For You
- Higher conflict-driven energy costs can feed into consumer prices if oil and gas shipments through Hormuz stay disrupted.
- Congress has not approved the White House's June request for $87.6 billion in supplemental war funding.
- Taxpayers bear replacement costs for munitions and equipment the Pentagon loses in battle, CBO said.
What's Happening
- CBO pegged Defence Department war costs above $38 billion through August 1.
- The nonpartisan office released the assessment on September 15 at House Democrats' request.
- Defence Secretary Pete Hegseth had earlier cited about $37.5 billion in Senate testimony.
How CBO scores war spending
- The conflict began on February 28 and was in its seventh month when CBO reported.
- CBO said estimates exclude long-term veterans' healthcare for personnel killed or injured.
- A Pentagon inspector general report cited strategic inventory shortfalls from the war.
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