Iran war has cost on average $246M per day in its first five months

The nonpartisan Congressional Budget Office estimates the U.S. war with Iran has cost the Pentagon $38.1 billion through Aug. 1 - about $246 million per day over the first five months - and expects incremental costs of roughly $2 billion to $3 billion for each additional month of fighting. More than half of the expense reflects replacing expended missiles and munitions; increased flight hours added $10.4 billion and higher fuel costs $2.7 billion. The conflict has depleted as much as two-thirds of missile-defense interceptors since June 2025, and rebuilding inventories would take at least five years even with ramped production. The Pentagon’s own accounting produced a similar total earlier in the summer.

The war’s economic ripple effects have pushed global energy prices and shipping costs higher, with the CBO projecting a 0.5 percentage-point lift to the Fed’s preferred PCE inflation measure by early 2027 (0.3 points for core PCE), driven largely by gasoline and fuel. Defense oversight reports document widespread damage to bases across eight Middle Eastern countries, dozens of aircraft lost or damaged - including F-35A and F-15E airframes - and shortages of rocket motors, propellants and skilled labor that complicate replenishment. State Department evacuation and contingency costs and diplomatic-site damage add further expense. Those findings are likely to intensify political debate over the war’s costs and objectives heading into the U.S. election.