The ongoing US military conflict in Iran has cost the Department of Defense approximately $38 billion as of August 1, 2026, according to a Congressional Budget Office (CBO) report released yesterday. The monthly expenditure currently stands at around $3 billion, reflecting costs such as replacing munitions, equipment losses, increased flying hours, and fuel expenses.
The CBO report details that these figures exclude the basic running costs of the military involved and other federal government expenses like higher fuel prices for the postal service. The total cost has likely increased since early August. The report highlights that if the conflict continues, costs will rise slowly if violence remains low but could accelerate rapidly if tensions escalate, similar to the spike seen in July.
This financial assessment comes amid President Trump's characterization of the conflict as 'small potatoes,' despite the substantial budgetary impact. The CBO notes that during periods of relatively muted tensions, such as May and June, the conflict required about $2 billion monthly. The report underscores the significant fiscal burden of the military intervention, which is ongoing and subject to change based on the conflict's intensity.
The CBO's analysis provides a detailed breakdown of the conflict's financial impact up to August 1, 2026, serving as a key reference for policymakers and budget planners assessing the war's economic implications.