Washington, September 16 (Daily Kiran) : The Congressional Budget Office (CBO) reported that by July, the Pentagon had spent approximately $38 billion on military operations against Iran. The agency estimates that monthly expenses could continue to rise by $2 to $3 billion as the conflict persists.
The CBO warned that the ongoing conflict has depleted critical U.S. missile defense stocks, driven up energy prices, and contributed to inflation across the American economy. The report analyzed military, logistical, and economic costs associated with Operation Epic Fury, which began on February 28.
The initial phase of the operation lasted until a ceasefire was implemented on April 8. However, President Donald Trump declared an end to the ceasefire on July 10, citing attacks on oil tankers in the Strait of Hormuz.
Of the estimated $38 billion expenditure, $21.7 billion is allocated for the replenishment of missiles and other weaponry. Additionally, $10.4 billion is earmarked for increased flight hours, $2.7 billion for rising military fuel costs, $1.9 billion for destroyed equipment in combat, and $1.5 billion for other military operations.
The largest portion of the spending was directed toward replenishing used weapons, with estimates of $13.1 billion for missile defense interceptors and $7.3 billion for land-attack cruise missiles. Notably, the estimate does not include the costs for repairing or rebuilding U.S. military bases damaged by Iranian attacks. It also excludes expenses related to diplomatic efforts, foreign aid, and long-term medical care and disability compensation for injured soldiers and veterans.
The CBO stated that the Pentagon did not provide requested information, forcing the agency to rely on government databases and publicly available reports, leading to significant uncertainty in its estimates.
The report cautioned that since June 2025, the U.S. may have used nearly half to two-thirds of its missile defense interceptor stockpile. The CBO noted, “The Defense Department does not disclose how many weapons it possesses. However, comparing the usage data of missile defense interceptors to the total number of weapons purchased suggests a significant depletion of stocks.”
Even if the Pentagon accelerates its procurement process, replenishing these weapons could take at least five years. The report highlighted that any future conflict with a nation possessing a large arsenal of ballistic and cruise missiles could pose a serious issue.
The CBO specifically mentioned China, indicating that a potential military conflict related to Taiwan could see significant involvement from China’s vast missile stockpile.
The conflict has also impacted the supply of oil and natural gas. Disruptions in the Strait of Hormuz and the Red Sea have led to rising energy prices. According to the CBO, this has contributed to a 2.3 percentage point increase in the annual inflation rate for the second quarter of 2026.
The agency predicts that inflation in the first quarter of 2027 will be 0.5 percentage points higher than its pre-war forecasts. Rising inflation may also lead to increased interest rates on U.S. Treasury securities.
In July, Defense Secretary Pete Hegseth informed Congress that costs for operations against Iran would reach $37.5 billion by September. Meanwhile, the White House has requested an additional $87.6 billion in funding, of which $67.1 billion is designated for the Pentagon.
According to the CBO, approximately $42.3 billion of the requested funds are directly related to the ongoing conflict.
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