Iran war costs Pentagon $38.1 billion in five months

New York. The Iran war cost the Pentagon $38.1 billion in the first five months. This is the conclusion reached by the non-partisan Budget Office of the US Congress (CBO) in a new study.

The total includes, among other things, the costs of replacing spent ammunition and destroyed equipment as well as higher expenses for flight operations and fuel.

The CBO announced this in a letter to Representative Brendan Boyle from Pennsylvania on Tuesday. Boyle is the ranking Democrat on the House Budget Committee.

The calculation largely corresponds to information provided by Defense Secretary Pete Hegseth. In July, he put the war costs before Congress at $37.5 billion.

Each additional month of war is expected to cost at least two to three billion dollars. If there is further escalation, monthly expenses could be even higher, the report says.

The US Budget Office expects the war to further drive up inflation in the US. At the beginning of 2027, the annual inflation rate is therefore likely to be 0.5 percentage points higher than previously assumed. The authority expects core inflation, which excludes energy and food prices, to rise by 0.3 percentage points. The reason for this is higher energy costs, which also make goods and services more expensive.

The main reason for the price pressure is disruptions in oil and gas deliveries through the Strait of Hormuz. Core inflation is expected to rise more slowly but remain more stubborn, the CBO said.

The war also greatly reduced US ammunition stocks. It could take five years or more to replenish them. According to the Budget Office, this reduces the ability of the US military to respond to another major conflict.

The deficiency would be particularly problematic in a confrontation with an enemy that has numerous ballistic missiles and cruise missiles. The CBO expressly referred to a possible conflict between China and Taiwan.

The report was released as the House of Representatives was set to vote on a proposal to withdraw US forces from combat operations without a formal declaration of war. This is the 18th attempt this year to limit the president's war powers.

Boyle criticized the high spending. Trump and the Republicans have been telling Americans for years that there is a lack of money for families in their own country. On the other hand, they could raise tens of billions of dollars for a risky war, while the population would have to bear the consequences.

At the beginning of March, Trump declared that the war was “as good as” over. Meanwhile, he acknowledged that the conflict could continue beyond the November 3 congressional elections. According to a report in the Wall Street Journal, some of his senior advisers even believe it is possible that the war will last until the end of his term in office.

Former US Secretary of State Antony Blinken sees a clear way out of the war: a diplomatic agreement with Iran. However, Trump is facing a dilemma, Blinken told Bloomberg TV on Tuesday. On the other hand, the pressure on the president is growing due to the tense markets, the scarce ammunition stocks and the upcoming congressional elections. On the other hand, he would have to make concessions to Iran for an agreement - and could make this appear as a defeat.