The latest assessment from the Congressional Budget Office indicates that the six-month-long military campaign against Iran is costing slightly more than initially projected, while simultaneously posing a significant threat to America's military readiness and fiscal stability.

The CBO's Tuesday report reveals that cumulative spending on the operation had reached $38 billion as of August 1st, with an anticipated additional $3 billion in monthly expenditures moving forward. This figure surpasses the $37.5 billion disclosed by Defense Secretary Pete Hegseth during his July testimony before the Senate.

The budget watchdog also projects that the conflict will elevate US inflation by 0.5 percentage points during the first quarter of 2027.

According to the report, the war has severely depleted American ammunition reserves and has driven up global oil prices by disrupting energy shipments through the Strait of Hormuz, adding further strain to an already stretched federal budget. The CBO estimates it would require at least five years to replenish existing munitions stocks.

Significantly, the $38 billion tally does not include expenses related to recent strikes on commercial vessels in the Strait of Hormuz, attacks on US military installations in the region, or the borrowing costs associated with war financing—which could potentially add tens of billions more to the final bill.

Additionally, the CBO noted that the Defense Department has declined to cooperate with this congressional financial review.

Severe ammunition depletion undermines combat readiness

The CBO attributes the bulk of wartime expenditures to the rapid consumption of munitions. Media reports indicate that US forces have utilized nearly their entire inventory of long-range precision-guided missiles during this campaign.

The CBO cautioned that shortages of critical supplies such as missile interceptors will diminish the Pentagon's ability to respond effectively to other potential conflicts around the globe.

During his July Senate appearance, Secretary Hegseth urgently requested approximately $90 billion in emergency appropriations to rebuild ammunition stockpiles, stating plainly that without these funds, the nation would face a serious shortfall.

The audit was initiated at the request of Representative Brendan Boyle of Pennsylvania, the top Democrat on the House Budget Committee. Boyle noted in a statement that the conflict has already claimed the lives of 18 American service members and left many more wounded.

He added that this nonpartisan CBO report clearly demonstrates the war is costing US taxpayers hundreds of billions of dollars, with that figure continuing to climb.

Energy market turmoil compounds fiscal pressure

The Strait of Hormuz serves as a vital artery for global energy supplies, carrying roughly 20 percent of the world's oil prior to the conflict. The disruption to shipping through this waterway, along with damage to energy infrastructure in neighboring Gulf states, has substantially increased energy costs for both consumers and producers worldwide.

Meanwhile, the ongoing military operation is exacerbating America's already deteriorating fiscal position. Total public debt surpassed $40 trillion in August. Since the CBO's accounting does not incorporate borrowing costs for war financing, the true expense of the conflict is likely far higher than current figures suggest.

The Trump administration is currently seeking to bring the conflict to a conclusion and reopen the Strait of Hormuz. President Trump has frequently drawn comparisons between this military action and the US invasions of Iraq and Afghanistan following the September 11, 2001 attacks.

For historical perspective, media reports indicate the Iraq war, which spanned eight years and at its peak deployed over 100,000 ground troops, cost approximately $2 trillion. The twenty-year Afghanistan campaign, which similarly mobilized more than 100,000 personnel, carried a price tag of roughly $2.3 trillion. Against that backdrop, the current conflict's monthly burn rate of $3 billion has drawn considerable attention from markets and lawmakers concerned about long-term fiscal sustainability.