‘Iran war costs US $45.1 billion’, surpassing Pentagon’s $38 billion estimate: Report

The $45.1 billion cost estimate from the Pentagon surpasses the $38 billion price tag the Congressional Budget Office (CBO) projected the war cost through August 1.

The US war with Iran has reportedly cost $45.1 billion, the Pentagon informed Congress on Friday. As per a CNN report, the human and material financial toll of the ongoing war involving the US and Iran exceeded previous disclosures, with congressional updates indicating total expenses have reached $45.1 billion.

According to sources cited by CNN, the Pentagon informed lawmakers that the war had incurred expenses totalling $43.6 billion as of September 3, with an additional $1.5 billion allocated for supplementary fuel requirements, noting that this omits installation repairs and broader operational expenses.

The $45.1 billion cost estimate from the Pentagon surpasses the $38 billion price tag the Congressional Budget Office (CBO) projected the war cost through August 1.

The report comes after the Pentagon estimated $37.5 billion as the bill for the war in July.

What did CBO estimate

In a report dated September 15, 2026, the CBO said it estimates that as of August 1, 2026, the armed conflict with Iran has cost the Department of Defense’s (operational, logistical, and sustainment costs) approximately $38 billion.

That amount included the costs of replacing expended munitions and equipment lost in battle, increased flying hours, other operations, and increased fuel costs.

It also reflected "that the initial, intense phase of the conflict lasted just over a month (less intense combat operations are still ongoing) and that relatively few US forces have been involved compared with the much larger and longer US operations in Iraq and Afghanistan."

CBO’s estimate did not include costs borne by other parts of the federal government, such as the increased cost of fuel used by the Postal Service. Nor did it include costs already accounted for in the federal budget, such as the basic operating costs of the military forces involved in the conflict.

The CBO also predicted that the costs will continue to increase — "slowly if the level of violence remains low and sporadic [as it did in May and June] and rapidly if the intensity of the conflict escalates [as it did in July]."

The CBO estimated the war will continue to cost the US approximately $2 billion to $3 billion per month past August 1. "Monthly costs could be higher still if the violence escalated further," it said.

The economic impact of Iran war

The office told Congress that the war is expected to increase inflation for the first quarter of 2027, raising costs at a time Americans are growing more concerned about the economy.

In the September 15 report, the CBO estimated that the main economic impact of the conflict with Iran consists of "inflationary pressures caused by the reduction in shipments of oil and natural gas through the Strait of Hormuz and disruptions to shipping through the Red Sea."

That reduction has increased energy prices globally. "In CBO’s assessment, the effects of those higher energy prices will put upward pressure on consumer prices," the report added.

"As a result, in the first quarter of 2027, inflation [measured year over year] in the price index for personal consumption expenditures (PCE) is now estimated to be 0.5 percentage

points higher than the agency projected in February 2026, and core PCE inflation is estimated to be 0.3 percentage points higher than previously projected," the CBO report added.

It was further estimated that higher rates of inflation attributable to the conflict will boost interest rates on Treasury securities.

In CBO’s assessment, interest rates on 3-month Treasury bills are nearly 0.2 percentage points higher in 2026 than the agency estimated this past.

About the Author

Akriti Anand is a Deputy Chief Content Producer at LiveMint. She is a digital journalist with more than six years in the news industry.<br><br> In her current role, she covers both national and international politics, and also keeps a close watch on the latest trends in science and space exploration. <br><br> Akriti joined the LiveMint team in October 2023. Before this, she built a strong career at other major media houses. She worked as a senior sub-editor at India Today. Later, she moved to CNBCTV-18. There, she covered high-pressure topics like breaking news and major elections. She spent much of her time analysing Parliament bills and complex political debates. She is also a skilled editor who knows how to polish a story for a digital audience. <br><br> One of her career highlights happened at CNBCTV-18. She made her first television debut during the Chandrayaan-3 mission. She also provided special on-air coverage for the Karnataka Elections. <br><br> When she is not busy with breaking news, Akriti loves to write explainers and interview experts on a wide range of issues. She also enjoys making complex space missions easy for everyone to understand. <br><br> Her education helps her tackle these diverse subjects. She holds a BA in English Literature, a Postgraduate Diploma in Mass Communication, and a Master’s degree in Development Studies. She is currently expanding her knowledge in climate journalism.<br><br> Connect with Akriti here<br> LinkedIn: <a href="https://www.linkedin.com/in/akriti-anand-868285199">https://www.linkedin.com/in/akriti-anand-868285199</a><br> Twitter/X: <a href="https://x.com/AkritiAnand7">https://x.com/AkritiAnand7</a><br> Email: akriti.anand@htdigital.in