Iran war increasing inflation, straining US munitions: congressional report

A nonpartisan Congressional Budget Office (CBO) report indicates that the ongoing six-month war in Iran has cost $38 billion and is projected to increase inflation by 0.5 percentage points in early 2027. The conflict is also depleting U.S. munitions stockpiles, with replenishment potentially taking up to five years. The report, requested by a House Budget Committee Democrat, highlights the significant financial burden on taxpayers and the human toll of the war. This comes as the Trump administration faces criticism for the war, which has disrupted global energy markets and contributed to rising prices ahead of midterm elections. Defense Secretary Pete Hegseth has previously estimated the war's cost similarly and urged an increase in the military budget.

A Congressional Budget Office (CBO) report estimates the war in Iran has cost the US at least $38 billion and significantly depleted its defensive missile stockpile, potentially requiring five years to rebuild. This spending primarily covers munitions, with missile defense interceptors being a major driver. The conflict has also damaged US bases in the region and contributed to inflation by disrupting oil shipments. The Pentagon's own inspector general previously reported $33.4 billion in total spending through June 30, citing strategic inventory shortfalls and industrial bottlenecks for resupply. The CBO report, requested by Congressman Brendan Boyle, highlights that continued conflict could add $3 billion per month to the cost.