CBO Estimates U.S. Iran War Cost Reached $38.1 Billion and Depleted Munitions

The CBO’s direct-cost estimate excludes repairs to U.S. bases in the region that were damaged during the conflict.
The White House and Pentagon have publicly downplayed concerns about depleted arsenals. President Donald Trump said, “We have virtually unlimited amounts of mid- to high-grade ammunition, far more than we can ever use,” while Adm. Brad Cooper said, “I’m not concerned at all. We’re well-armed and ready for any contingency.”
The conflict has reportedly used “virtually all” of the U.S. military’s long-range precision missiles, underscoring that the stockpile problem extends beyond missile-defense interceptors.
The war’s military costs are tied to a wider strategic mission: the USS George Washington is enforcing a U.S. naval blockade against Iran and providing cover for commercial vessels transiting the Strait of Hormuz.
The Defense Department’s inspector general reported that shortages of solid rocket motors, explosives, propellants and skilled workers were complicating efforts to rebuild weapons inventories after the rapid pace of use.
The U.S. war with Iran has cost $38.1 billion from late February through August, according to the Congressional Budget Office. The conflict could demand an additional $2 billion to $3 billion each month going forward, depending on how intense fighting becomes. About $21.7 billion went to replacing expended munitions, including $13.1 billion for missile-defense interceptors and $7.3 billion for cruise missiles.
The rapid munitions use has depleted roughly half to two-thirds of U.S. missile-defense interceptors, creating a major readiness problem. Rebuilding those stocks could take at least five years, potentially limiting America's ability to respond to a heavily armed rival like China. The CBO also projects the war could raise inflation by about 0.5 percentage points in early 2027.
Replacing expended weapons made up the largest chunk of war spending. Missile-defense interceptors alone cost $13.1 billion, while cruise missiles ran $7.3 billion. The remainder covered increased flying hours, fuel, and other operational expenses. WRAL reports the estimate aligns closely with an earlier Pentagon estimate of $37.5 billion and an inspector general estimate of $33.4 billion through June 29.
The conflict has used "virtually all" of the U.S. military's long-range precision missiles, Middle East Eye reports. This depletes stocks far beyond just missile-defense interceptors. Rebuilding takes years. The Defense Department's inspector general identified major bottlenecks: shortages of solid rocket motors, explosives, propellants, and skilled workers are slowing weapons production.
The Congressional Budget Office excluded repair costs for U.S. bases damaged during the conflict from its direct-cost estimate, meaning the true bill is likely higher. Energy price spikes added costs not fully captured in the $38.1 billion figure.
President Trump dismissed arsenal concerns, saying, "We have virtually unlimited amounts of mid- to high-grade ammunition, far more than we can ever use." Admiral Brad Cooper echoed this confidence: "I'm not concerned at all. We're well-armed and ready for any contingency." Their public stance contrasts sharply with the CBO's findings on depleted stocks.
The USS George Washington enforces a U.S. naval blockade against Iran while protecting commercial vessels through the Strait of Hormuz. This wider strategic mission explains why monthly costs will likely stay high. Energy disruptions tied to the conflict threaten global markets, justifying the Pentagon's sustained presence in the region.
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