US spent $45.1B on war with Iran
What's the story
The ongoing conflict between the United States and Iran has cost the US a whopping $45.1 billion, according to a report by CNN. The figure is much higher than the Congressional Budget Office's earlier estimate of $38 billion for the war through August 1. The Pentagon recently updated Congress on the financial toll of this war, revealing that expenses have now reached an estimated total of $45.1 billion.
Cost details
Breakdown of the updated cost estimate
The Pentagon's latest estimate breaks down to $43.6 billion in war costs as of September 3 and an additional $1.5 billion for extra fuel requirements.
However, this figure does not include costs for base repairs or other indirect operational expenses.
Notably, the updated cost estimate is higher than the Pentagon's earlier July estimate of $37.5 billion for the war at that time.
CBO projection
Earlier estimates by CBO
In its September 15 report, the CBO estimated that as of August 1, the war with Iran had cost the Department of Defense some $38 billion.
This figure included costs for munitions and equipment replacement lost in combat, increased flying hours, other operations, and fuel costs.
The CBO also predicted that if violence remained low and sporadic like in May and June, costs would rise slowly.
Economic effects
War will raise inflation in Q1 2027, warns CBO
The CBO warned that the war would raise inflation in Q1 2027, amid rising concerns about the economy.
The report said, "Inflationary pressures were caused by the reduction in shipments of oil and natural gas through the Strait of Hormuz and disruptions to shipping through the Red Sea."
It also predicted higher inflation due to conflict would raise interest rates on Treasury securities.