Iran war has cost $45.1 billion, Pentagon tells Congress

The Pentagon has informed Congress that the ongoing conflict with Iran has incurred a cost of $45.1 billion thus far. This updated estimate, provided on Friday, September 18, details expenditures through early September, including significant outlays for munitions replacement and operational costs. The reported figure is higher than previous estimates from the Congressional Budget Office, which had pegged the cost at $38 billion through August 1.

The financial burden of the war extends beyond direct military spending, with the conflict significantly impacting global oil prices. Disruptions to crucial shipping lanes, such as the Strait of Hormuz and the Bab al-Mandeb Strait, have led to increased energy costs and contribute to concerns about broader regional stability. Experts suggest the war could further elevate inflation into early 2027 due to these heightened energy prices. It's also noted that the $45.1 billion figure does not fully encompass all associated expenses, such as the cost of repairing damaged U.S. military infrastructure or the wider economic impact on consumers from rising fuel prices.