The U.S. war with Iran has incurred costs of over $38 billion (equivalent to €33 billion) for the United States by early August 2023. This estimate was made by the Congressional Budget Office (CBO) and includes the costs of the U.S. Department of Defense from February 28 to August 1.
War Costs and Lack of Information
The U.S. Department of Defense did not provide any information to the CBO for its assessment, and the agency relied on government databases and public reports. The CBO stated that its estimates are significantly affected by considerable uncertainty due to the lack of complete information. However, this figure generally aligns with the estimate provided by Pete Hegseth, the U.S. Secretary of Defense, in July; he had declared the cost of the war to be $37.5 billion.
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Economic Consequences and Supply Shortages
The largest portion of the costs, amounting to $21.7 billion, pertains to the replacement of munitions. The CBO has also warned of a reduction in missile defense system stocks and estimated that the United States has likely consumed between half to two-thirds of its inventory of these weapons since June 2025. This could lead to inventory reductions for years.
On Monday, a report from the Pentagon's Inspector General warned that the U.S. military campaign against Iran, known as Operation Epic Fury, has resulted in "strategic shortages in inventories." The CBO also emphasized that this conflict has broader impacts on the U.S. economy, particularly due to disruptions in oil and gas transport through the Strait of Hormuz and the Red Sea, which have increased energy prices.
This estimate was prepared at the request of Representative Brendan Boyle, the senior Democrat on the House Budget Committee. Boyle criticized the amount spent, stating: “This nonpartisan CBO report clearly shows that the war has also cost American taxpayers tens of billions of dollars and continues to rise.”
In June, the White House requested an additional $87.6 billion (equivalent to €76 billion) to finance the war, but Congress has not yet approved this request.
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