Reports: Iran War has cost the US more than $38 billion
New reports from two separate independent institutions this week outline the financial, military and economic impacts of the war in Iran, including depleted weapon stockpiles, rising inflation and record fuel prices.
WASHINGTON —
The war in Iran has cost the United States more than $38.1 billion as of August 2026, according to a new Congressional Budget Office report released Tuesday.
A separate report from the Pentagon inspector general estimated a similar cost — around $33.4 billion through June of this year.
The CBO, a nonpartisan institution, and the Pentagon inspector general, an independent watchdog for the Department of Defense, released the reports detailing the current and projected costs of the war.
The CBO predicted the conflict would continue to drive up consumer prices, adding half a percent to inflation in the first quarter of 2027, largely due to reduced oil and natural gas shipments through the Strait of Hormuz and shipping disruptions in the Red Sea.
The Pentagon report also highlighted “strategic inventory shortfalls” for advanced weapons. The CBO also noted that the U.S. has likely burned through half to two-thirds of its missile defense interceptor stockpile, which could take years to replace.
The reports document additional costs, including $80 million for contingency plans to evacuate U.S. personnel, their families and other American citizens from the region, according to the report from the Pentagon. It also said that physical damage to U.S. diplomatic facilities from Iranian missile strikes cost approximately $184 million.
Still, the reports warned that the true, total cost of the war remains unknown, in large part because neither accounted for rebuilding damaged U.S. bases, among other factors.
Fuel prices have surged amid the conflict. According to AAA, the national average for a regular gallon of gas remains well over $4, while diesel reached over $6 per gallon for the first time in history.
While crude oil prices currently stand at around $100 per barrel, the CBO predicts oil and gas prices will likely fall from the end of 2026 through next year.
Meanwhile, the CBO estimates the U.S. could spend an additional $2 to $3 billion every month the war continues.
Watch more on the cost of the war in Iran: