Archive · 16 Sep 2026
CBO Warns Iran War Costs $38 Billion, Strains Missile Stocks
The United States has spent about $38 billion fighting Iran, according to the Congressional Budget Office.
One version of the estimate puts the total at $38.1 billion.
The fighting became less intense after its first month, but operations are still continuing.
Every extra month could cost between $2 billion and $3 billion or more.
The US military has used many defensive missiles to stop attacks.
This leaves fewer missiles available for a possible future conflict with China.
Making replacement missiles could take at least five years.
The war has also affected fuel and shipping costs.
These changes could make prices in the United States rise faster in 2027.
The Congressional Budget Office estimated that US operations against Iran cost about $38 billion, or $38.1 billion, through August 1, 2026.
Each additional month of fighting could cost $2 billion to $3 billion or more, depending on the conflict’s intensity.
More than half of the spending went toward replacing missiles and other munitions; flying hours cost $10.4 billion and higher fuel prices added $2.7 billion.
The United States has used an estimated half to two-thirds of its Patriot, THAAD, SM-3 and SM-6 interceptor inventory since June 2025.
Rebuilding interceptor stocks could take at least five years, while the conflict may raise first-quarter 2027 inflation by 0.5 percentage points.
- Who
- The United States military, the Congressional Budget Office, the Department of Defense and Iran are central to the report; China is discussed as a potential future adversary.
- What
- The Congressional Budget Office estimated the cost of US combat operations against Iran and warned that the conflict has depleted large portions of US missile-defense stocks.
- When
- The cost estimate covers operations through August 1, 2026; the report was released on September 16, 2026. Interceptor use in the estimate dates back to June 2025.
- Where
- The combat operations involve Iran, while the reported military and economic effects concern the United States. The report also discusses possible implications for China and Taiwan.
- Why
- Costs resulted from munitions replacement, increased flying hours, military operations and higher fuel prices; the conflict also used missile-defense interceptors and disrupted energy and shipping flows.
- Estimated cost through August 1
- About $38 billion; one report specifies $38.1 billion
- Additional monthly cost
- About $2 billion at lower fighting intensity and $3 billion or more at July-level intensity
- Major cost components
- More than half for missiles and other munitions, $10.4 billion for increased flying hours and $2.7 billion for higher fuel prices
- Interceptors used
- An estimated half to two-thirds of the US inventory since June 2025
- Affected systems
- Patriot, THAAD, SM-3 and SM-6 interceptors
- Replenishment time
- At least five years, even if production increases
- Potential inflation impact
- Headline PCE inflation could be 0.5 percentage points higher in the first quarter of 2027, while core PCE inflation could be 0.3 points higher
- Estimate uncertainty
- The Department of Defense did not respond to Congressional Budget Office information requests
