Archive · 20 Sep 2026
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.
- When
- The Pentagon’s $43.6 billion figure covered costs through September 3, with the report citing a CBO estimate through August 1, 2026.
- Where
- The conflict involves Iran, with economic effects linked to the Strait of Hormuz and the Red Sea.
- 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.
- 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.