Iran war costs reach $38B as inflation, supply risks mount

[Iran Missile Crisis] wildpixel/iStock via Getty Images The war with Iran cost U.S. taxpayers about $38 billion during its first five months and is expected to add to inflation, according to a new Congressional Budget Office analysis. The estimate covers replacement weapons, equipment lost in combat, additional flight operations and higher fuel expenses. It is close to Defense Secretary Pete Hegseth’s July estimate of $37.5 billion. The CBO said the conflict could cost another $2 billion to $3 billion for each additional month. Expenses could rise faster if fighting intensifies. For investors, the report points to continued demand for defense equipment while raising concerns about interest rates and consumer spending.