The ongoing US conflict with Iran has cost the Trump Administration an estimated $45.1 billion, according to a Pentagon estimate provided to the US Congress on Friday, as reported by CNN. The latest figure includes $43.6 billion in war-related costs through September 3, along with an additional $1.5 billion for extra fuel. However, the Pentagon's estimate does not represent a complete accounting of the financial cost of the conflict, as it does not include the cost of repairing damaged US military bases and buildings, nor provides Congress with a detailed assessment of indirect military-operation costs. According to the latest Pentagon assessment, around $28.1 billion was allocated towards replacing munitions used during the conflict, while approximately $4.3 billion covered equipment losses. As per CNN, the figure does not include the cost of repairing damaged US military bases and buildings and does not provide the US Congress with a detailed breakdown of indirect military-operation costs.
The Pentagon's latest estimate exceeds previous projections, coming in higher than the $38 billion cost projected by the Congressional Budget Office (CBO) through August 1 and also surpassing the Pentagon's earlier estimate of $37.5 billion in July. According to the CBO's September 15 report titled Estimating the Cost of Combat Operations Against Iran, the agency estimated that the Department of Defense had incurred approximately $38 billion in costs as of August 1, covering operational, logistical and sustainment costs including replacing expended munitions and equipment lost in battle, increased flying hours, other military operations and higher fuel costs. The CBO cautioned that its estimate was subject to "considerable uncertainty," as it relied on government databases and public reports after the Department of Defense did not respond to its requests for information. The CBO's estimate also excluded the cost of repairing US facilities damaged during the war, with a significant portion of the estimated cost linked to munitions expenditures.
The CBO cautioned that its estimate was subject to "considerable uncertainty" and projected that the cost of the conflict could continue to rise depending on the intensity of fighting. The agency estimated that another month of conflict would cost around $2 billion if violence remained at levels seen in May and June, while monthly costs could reach $3 billion if fighting returned to approximately the intensity seen in July. The CBO noted that monthly costs could be higher still if the violence escalated further. The Pentagon's latest $45.1 billion figure therefore comes as the financial burden of the conflict continues to increase, while several categories of potential expenditure remain outside the current estimate. With the latest Pentagon estimate excluding several categories of costs, the eventual financial impact of the US-Iran war is likely to be higher than the $45.1 billion figure currently reported.
Beyond direct military spending, the conflict has generated wider economic effects through disruptions to oil and natural-gas shipments through the Strait of Hormuz and shipping through the Red Sea. According to the CBO, those disruptions have contributed to higher global energy prices, affecting crude oil as well as refined petroleum products such as gasoline, diesel and jet fuel. The agency estimated that higher energy prices would put additional pressure on consumer inflation, with inflation measured by the personal consumption expenditures (PCE) price index projected to be 0.5 percentage points higher in the first quarter of 2027 than its February 2026 projection, while core PCE inflation would be 0.3 percentage points higher. The economic impact could extend to US borrowing costs as well, with the CBO estimating that three-month Treasury bill rates would be nearly 0.2 percentage points higher in 2026 than projected in February, while by the first half of 2027 they would be less than 0.1 percentage point higher than previously projected.
The CBO also noted that the US administration had requested $87.6 billion in supplemental appropriations in June, including $67.1 billion for the Department of Defense. Of that request, $42.3 billion appeared directly related to the conflict, according to the CBO. The budget office also said it could not estimate potential additional costs linked to diplomatic operations and foreign aid because such expenses would depend on the outcome of the conflict and could be spread across different areas of government spending. The CBO had also noted that its $38 billion figure did not include costs borne by other parts of the federal government or certain expenses already accounted for in the federal budget, while it identified the large expenditure of missile-defence interceptors as a major opportunity cost for the Department of Defense, saying the spending would leave the US with a reduced inventory of interceptors for several years.
