The cost of the war with Iran as of August ١, ٢٠٢٦, for the United States Department of Defense has reached approximately $٣٨ billion. This figure was announced by the United States Congressional Budget Office (CBO) and reflects the costs arising from a war that began with US and Israeli attacks on Iran in late February.
Rising Costs as Conflicts Continue
The CBO has predicted that as the conflicts continue, the monthly costs of the war could be between $٢ billion to $٣ billion or even more. These costs include the replacement of consumed munitions, equipment lost in battle, and increased fuel costs for military forces.
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In July, Pete Hegseth, as the United States Secretary of Defense, estimated the cost of the war with Iran at $٣٧.٥ billion. However, the CBO now estimates that the main economic impacts of this conflict will be inflationary pressures resulting from disruptions in oil and natural gas supply.
Economic Consequences and Inflation
In response to this war, Iran has blocked the Strait of Hormuz, which is one of the vital waterways for energy transfer, and this has led to increased costs in global markets. According to CBO forecasts, the inflation rate in the first quarter of next year will be ٠.٥ percent higher than what was predicted in February. According to the CBO, the core inflation rate, which excludes fluctuations in food and energy prices, is also likely to be ٠.٣ percent higher than previous forecasts.
This report also notes that the increase in inflation rates will lead to an increase in interest rates on Treasury bonds. Therefore, the financing costs for the United States government will also be affected and could lead to greater volatility in financial markets.
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