Market Flux Event
CBO Puts US Iran War Cost at $38.1 Billion Through August, Averaging $246 Million Per Day
Read this in the Market Flux appThe nonpartisan Congressional Budget Office has estimated the US war with Iran cost the Pentagon $38.1 billion from its start on February 28 through August 1, averaging $246 million per day across the first five months of fighting. The CBO projects an additional $2 billion to $3 billion in costs for each further month of combat. The figure does not include repairing American bases damaged during the conflict.
More than half of the total came from replacing missiles and other munitions. Increased flying hours added $10.4 billion to the bill, while higher fuel prices contributed another $2.7 billion. The CBO separately warned that the war has consumed as much as two-thirds of US missile-defense interceptors since June 2025, largely from defending Israel, and that rebuilding that inventory would probably take at least five years even if production were accelerated.
The Pentagon inspector general, using a different accounting through June 29, put the cost at $33.4 billion, including $22.3 billion to replace expended munitions, and reported hundreds of buildings damaged or destroyed at bases across eight Middle Eastern countries. Newly released photographs showed a $300 million E-3 Sentry surveillance aircraft with its tail ripped from its fuselage by an Iranian strike, with an official acknowledging the damage had not been fully communicated to the American public.
On the economic front, the CBO estimates the war will have pushed year-over-year PCE inflation 0.5 percentage points higher by the first quarter of 2027, with core PCE rising 0.3 points as energy costs move through supply chains. Gasoline and other fuels are expected to account for roughly 40 percent of the total effect on consumer prices. Vice President Vance said separately that the conflict is set to enter a much different phase in coming months, with the US aiming to block Iran from projecting power across the region.
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Sources
- FaststocknewssIRAN WAR HAS COST THE PENTAGON $38.1B THROUGH AUGUST 1, PER CBO The nonpartisan office estimates another $2B to $3B per month for each additional month of fighting, averaging $246M per day across the first five months, per CNBC. Cost breakdown: • More than half came from replacing missiles and other munitions • Increased flying hours: $10.4B • Higher fuel prices: $2.7B CBO says the war has consumed as much as two-thirds of US missile-defense interceptors since June 2025, largely from helping defend Israel, and that rebuilding the inventory "would probably take at least five years, even if production was increased." On inflation, CBO estimates the war will have raised year-over-year PCE inflation by 0.5 percentage points by Q1 2027, with core PCE 0.3 points higher as energy costs move through supply chains. Gasoline and other fuels will account for about 40% of the effect on consumer prices. The Pentagon inspector general put the cost at $33.4B as of June 29, including $22.3B to replace expended munitions, and reported hundreds of buildings damaged or destroyed at bases across eight Middle Eastern countries.
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- RT_com$300 MILLION PENTAGON E-3 SENTRY plane LEFT IN PIECES after IRAN STRIKE — NEVER-BEFORE-SEEN PHOTOS TAIL RIPPED FROM FUSELAGE by FORCE of STRIKE OTHER BUILDINGS AT US BASES ACROSS MIDDLE EAST ALSO FLATTENED OFFICIAL: ‘MAJOR damage… hasn't been communicated to American public’
- CnbcIran war has cost on average $246 million per day in its first five months, CBO finds