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Reported Iran War Costs Reach $45.1 Billion, Exceeding Estimates
The United States has spent a lot of money fighting Iran.
The Pentagon says the cost reached $45.1 billion.
This includes most war expenses through September 3 and extra money for fuel.
It does not include some repair and operating costs.
Earlier, the Congressional Budget Office estimated the cost at $38 billion through August 1.
The two numbers cover different dates and expenses.
The CBO said the war could cost another $2 billion to $3 billion each month.
It also said disrupted oil, gas, and shipping could make prices and interest rates rise.
The Pentagon told Congress that the Iran war has cost $45.1 billion.
The figure includes $43.6 billion in expenses through September 3 and $1.5 billion for additional fuel.
The Pentagon estimate excludes installation repairs and broader operational expenses.
The Congressional Budget Office estimated $38 billion in defense costs through August 1, 2026.
The CBO projected monthly costs of $2 billion to $3 billion after August 1 and warned of higher inflation.
- Who
- The United States Department of Defense and the Congressional Budget Office provided cost estimates; the conflict involves the United States and Iran.
- What
- The reported cost of the ongoing war has reached $45.1 billion, exceeding the CBO’s earlier $38 billion estimate.
- Where
- The conflict involves Iran, with economic effects linked to the Strait of Hormuz and the Red Sea.
- When
- The Pentagon’s $43.6 billion figure covered costs through September 3, with the report citing a CBO estimate through August 1, 2026.
- Why
- Costs rose because of munitions and equipment replacement, increased flying hours, operations, fuel, and other war-related expenses; disruptions to energy and shipping are also driving inflationary pressure.
Pentagon Estimate
CBO Estimate
Reported cost
Pentagon Estimate
The Pentagon told lawmakers that total war-related expenses had reached $45.1 billion, including $1.5 billion for additional fuel.
CBO Estimate
The CBO estimated approximately $38 billion in Defense Department operational, logistical, and sustainment costs through August 1, 2026.
Scope of calculation
Pentagon Estimate
The Pentagon’s figure included costs through September 3 but excluded installation repairs and broader operational expenses.
CBO Estimate
The CBO figure included munitions and equipment replacement, increased flying hours, operations, and fuel, but excluded some federal-government costs and military costs already in the budget.
Future costs
Pentagon Estimate
The Pentagon update indicates costs have continued rising beyond the CBO’s August 1 estimate.
CBO Estimate
The CBO projected costs of $2 billion to $3 billion per month after August 1, with faster increases if fighting intensifies.
Key facts
- Pentagon estimate
- $45.1 billion total, including $43.6 billion in expenses and $1.5 billion for supplementary fuel.
- CBO estimate
- Approximately $38 billion in Department of Defense operational, logistical, and sustainment costs through August 1, 2026.
- Earlier Pentagon estimate
- The Pentagon estimated the war’s cost at $37.5 billion in July.
- Projected monthly cost
- The CBO estimated $2 billion to $3 billion per month after August 1, with higher costs possible if violence escalates.
- Excluded Pentagon costs
- The $45.1 billion figure omits installation repairs and broader operational expenses.
- Inflation effect
- The CBO estimated first-quarter 2027 PCE inflation would be 0.5 percentage points higher than its February 2026 projection, with core PCE inflation 0.3 points higher.
- Main economic pressures
- Reduced oil and natural-gas shipments through the Strait of Hormuz and shipping disruptions through the Red Sea have increased global energy prices.
Quotes
Congressional Budget Office
US congressional agency that estimated the conflict’s costs and economic effects
“As a result, in the first quarter of 2027, inflation [measured year over year] in the price index for personal consumption expenditures (PCE) is now estimated to be 0.5 percentage points higher than the agency projected in February 2026, and core PCE inflation is estimated to be 0.3 percentage points higher than previously projected”
livemint.com
“The CBO estimated the war will continue to cost the US approximately $2 billion to $3 billion per month past August 1.”
livemint.com
Sources
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