The cost of the war with Iran has reached approximately $38 billion for the United States government, and this war has fueled inflation. This new analysis has been presented by the Congressional Budget Office and includes direct war costs up to August 1, 2023.
Rising Costs and Military Effects
This estimate aligns with the latest Pentagon report on war costs from July, where Defense Secretary Pete Hegseth told Congress that the cost of the war is $37.5 billion. Another report from the Department of Defense's Inspector General estimated that this war has cost about $33.4 billion from February 28 to June 30.
The new analysis from the Congressional Budget Office indicates that the cost of the war is still rising and estimates that the government will spend an additional $2 to $3 billion each month to continue the war. This analysis also points to a significant reduction in U.S. munitions, including air defense missiles, stating that this reduction may diminish the country's military capability to respond to other major conflicts.
Political and Economic Responses
These reports have posed challenges for a government facing increasing questions about the consequences of the war. Democrats argue that this is a significant amount, especially at a time when the federal government has over $40 trillion in debt and many Americans consider affordability their top issue ahead of the midterm elections.
The majority of the costs, amounting to $21.7 billion, are allocated for munitions replacement. This includes $13.1 billion for defensive missiles and $7.3 billion for land-attack cruise missiles. Additionally, other costs include repairs or replacements of equipment, increased flight hours for air operations, and rising fuel costs.
However, this report does not account for the costs of damage to U.S. bases and facilities in the Middle East. A separate estimate from the Department of Defense's Inspector General estimated the repair costs for damages caused by Iranian attacks on U.S. diplomatic facilities in Iraq, Kuwait, Saudi Arabia, and the United Arab Emirates to be about $184 million.
