A report by the nonpartisan Congressional Budget Office (CBO) indicates that the ongoing conflict involving Iran is contributing to inflation and depleting U.S. munitions stockpiles. Released on September 15, 2026, the report estimates that the cost of the six-month war has reached $38 billion, with projections of an additional $3 billion in costs per month. It also forecasts a 0.5 percentage point increase in inflation during the first three months of 2027.
Brendan Boyle, a Democratic member of the U.S. House of Representatives Budget Committee who requested the report, stated, "The war has already taken the lives of brave American servicemembers and left others wounded. Beyond that human toll, this nonpartisan CBO report makes clear that the war has also cost American taxpayers tens of billions of dollars and counting, while continuing to drive up costs."
The report highlights the ongoing criticism of the Trump administration regarding the war, which began in February and has disrupted global energy markets, contributing to rising living costs ahead of the November midterm elections. Secretary of Defense Pete Hegseth previously estimated the war's cost at $37.5 billion during congressional testimony in July, where he advocated for a significant increase in the military budget.
The CBO report indicates that U.S. munitions supplies have been significantly depleted, with estimates suggesting it could take up to five years to replenish these stockpiles. The report does not account for borrowing costs related to the war or the impact of Iranian attacks on U.S. military installations in the Middle East.
In response to concerns over munitions shortages, Pentagon spokesperson Sean Parnell stated, "We have everything required to strike at the time and place of the president’s choosing." The report follows a separate assessment by Pentagon inspectors general that detailed munitions shortfalls and production bottlenecks, as well as the loss of U.S. aircraft during the conflict.