Iran war cost US $38bn and significantly depleted missile stockpile, report finds

Summary

The article reports that the Congressional Budget Office (CBO) estimates the United States has spent at least $38 billion on its war with Iran, with costs rising by approximately $3 billion for every additional month of fighting. A separate Pentagon inspector general review put spending through June 30 at $33.4 billion, including $22.3 billion for munitions, and identified strategic inventory shortages and production bottlenecks. Missile-defense interceptors—including Patriot, THAAD, and Navy systems—accounted for a major share of expenditures. The CBO said replenishing those stocks could take at least five years, even if production increases, creating potential vulnerabilities in a future conflict involving Taiwan and China. The conflict has also damaged U.S. facilities across several Middle Eastern countries and disrupted oil shipments through the Strait of Hormuz. According to the CBO, higher energy costs have increased inflation and could leave it 0.5 percentage points above previous projections by early 2027. The report estimated that the Pentagon’s supplemental funding request included about $42.3 billion directly tied to the conflict, while noting that some classified, infrastructure, diplomatic, and foreign-aid costs remain unquantified. President Donald Trump and Defense Secretary Pete Hegseth rejected reports of depleted U.S. munitions. The article also mentions allegations surrounding an investigation into a deadly Minab school strike, but says the Pentagon review did not address it.