US War With Iran Costs $247 Million Daily, Congress Report Finds
The United States' war with Iran has cost $38 billion as of August 1, with an additional $2-3 billion expected for each subsequent month of fighting, according to a report released by the non-partisan Congressional Budget Office (CBO). This equates to an average daily cost of nearly $247 million.
More than half of the total cost stems from the replenishment of missiles and other ammunition. The CBO estimates that additional flight hours have cost approximately $10.4 billion, while high fuel prices resulting from Iran's closure of the Strait of Hormuz added another $2.7 billion.
The report also indicates that the conflict has consumed up to two-thirds of U.S. interceptors since June 2025, partly due to American aid in defending Israel against Iranian attacks. The CBO projects that fully restocking these interceptors will likely take at least five years, even with increased production.
This missile shortage could pose a significant problem in a conflict with a rival possessing large numbers of ballistic and cruise missiles, such as in a potential confrontation with China over Taiwan. Furthermore, the war has contributed to consumer price increases by reducing oil and gas shipments and disrupting maritime trade due to the Strait of Hormuz closure.
The CBO forecasts that by the first quarter of 2027, the war will cause a 0.5 percentage point annual increase in inflation as measured by the Personal Consumption Expenditures (PCE) price index, the Federal Reserve's preferred inflation gauge. Core PCE inflation is expected to be 0.3 percentage points higher.
The analysis was requested by Representative Brendan Boyle of Pennsylvania, the ranking Democrat on the House Budget Committee. Boyle stated, "Donald Trump's destructive war in Iran has already claimed the lives of brave American service members and left others wounded. Beyond the human cost, this CBO report, a non-partisan body, makes it clear that the war has cost American taxpayers tens of billions of dollars, and the costs continue to climb."
