US Munitions Replacement Costs Reach $21.7B in Iran War, CBO Says

The six-month conflict between the United States and Iran has cost American taxpayers 38 milliards de dollars through August 1, according to data released by the non-partisan Congressional Budget Office (CBO). The military campaign, which began on February 28, continues to drain federal resources as monthly expenses climb by an estimated 3 billion dollars.

Munitions Exhaustion and Stockpile Deficits

The majority of the financial burden stems from the rapid expenditure of military hardware. According to the CBO, replacing the munitions used thus far in the conflict costs 21,7 milliards de dollars alone. An August report indicated that the United States had depleted nearly all of its long-range precision missiles during the fighting.

The severe depletion of interceptor missiles and other munitions has raised significant concerns regarding the military’s readiness for other potential conflicts. During a July 21 Senate hearing, Secretary of Defense Pete Hegseth reported closely aligned figures of 37,5 milliards de dollars and requested nearly 90 milliards de dollars in emergency funding to rebuild depleted reserves. The CBO estimates that fully reconstituting these stockpiles could take up to five years.

Economic Fallout and Energy Prices

Beyond direct military outlays, the conflict has severely disrupted global energy markets. Prior to the outbreak of hostilities, the Strait of Hormuz accounted for approximately 20% of the world’s petroleum transit. Ongoing attacks within the strait and against regional energy facilities in neighboring Gulf states have driven energy prices sharply upward.

The CBO projects that the war will add 0,5% to inflation during the first quarter of 2027. These rising economic pressures arrive as the federal budget faces existing constraints, while borrowing costs associated with financing the war could ultimately add tens of milliards de dollars more to the total national expense.

Congressional Inquiry and Institutional Strains

The CBO investigation was requested by Representative Brendan Boyle of Pennsylvania, the ranking Democrat on the House Budget Committee. In a public statement addressing the findings, Boyle criticized the human and financial toll of the administration’s policies, noting that 18 members of the U.S. armed forces have lost their lives in the conflict.

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The budget office’s assessment noted that the Department of Defense did not cooperate with congressional financial auditors during the review. The White House and the Pentagon did not immediately respond to requests for comment regarding the CBO’s findings.

Meanwhile, the administration of Donald Trump continues efforts to negotiate an end to the hostilities and secure the reopening of the Strait of Hormuz, even as military planners grapple with critical equipment shortages and mounting fiscal pressures.