‘Iran War Costs $45.1 Billion’, Beats Pentagon Estimate of $38 Billion: Report | Today’s news
The US war with Iran reportedly cost $45.1 billion, the Pentagon told Congress on Friday. According to a CNN report, the human and material financial losses of the ongoing war involving the US and Iran have exceeded previous disclosures, with congressional updates indicating that total spending has reached $45.1 billion.
According to sources cited by CNN, the Pentagon told lawmakers that the war had cost a total of $43.6 billion as of Sept. 3, with an additional $1.5 billion allocated to additional fuel requirements, noting that this leaves out installation repairs and broader operating costs.
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The Pentagon’s $45.1 billion cost estimate beats the $38 billion price tag the Congressional Budget Office (CBO) projected for war costs through August 1.
The news comes after the Pentagon estimated $37.5 billion in the war bill in July.
What did the CBO estimate?
In a report dated September 15, 2026 CBO stated that it estimated that as of August 1, 2026, the armed conflict with Iran had cost the Department of Defense (operational, logistical, and sustaining costs) approximately $38 billion.
This amount included the cost of replacing expended ammunition and equipment lost in battle, increased flight hours, additional operations, and increased fuel costs.
It also reflected “that the initial, intensive phase of the conflict lasted just over a month (less intensive combat operations are still ongoing) and that relatively few US forces were involved compared to the much larger and longer US operations in Iraq and Afghanistan.”
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The CBO estimate did not include costs borne by other parts of the federal government, such as the increased cost of fuel used by the Postal Service. It also does not include costs already accounted for in the federal budget, such as the basic operating costs of military forces engaged in conflict.
CBO also predicted that costs will continue to rise — “slowly if the level of violence remains low and sporadic (as it did in May and June) and quickly if the intensity of the conflict escalates (as it did in July).
CBO estimates that the war will continue to cost the US approximately $2 billion to $3 billion per month after August 1. “The monthly cost could be even higher if the violence escalates further,” it said.
Economic Impact of the Iran War
The bureau told Congress that the war is expected to raise inflation in the first quarter of 2027, raising costs at a time when Americans are increasingly worried about the economy.
In a Sept. 15 report, CBO estimated that the main economic impact of the conflict with Iran is “inflationary pressures from reduced oil and natural gas supplies through the Strait of Hormuz and disruptions to shipping through the Red Sea.”
This reduction has increased energy prices worldwide. “CBO estimates that the effects of these higher energy prices will push up consumer prices,” the report added.
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“As a result, inflation (measured year-on-year) in the personal consumption expenditure (PCE) price index is now estimated at 0.5 percent in the first quarter of 2027.
points higher than the agency projected in February 2026, and core PCE inflation is estimated to be 0.3 percentage points higher than originally projected,” the CBO report added.
Furthermore, higher inflation rates caused by the conflict were estimated to increase interest rates on government bonds.
The CBO estimates that interest rates on 3-month T-bills in 2026 are nearly 0.2 percentage points higher than the agency has estimated in the past.
