The ongoing US conflict with Iran has cost the Trump administration an estimated USD 45.1 billion, according to a Pentagon estimate provided to the US Congress on Friday, CNN reported, citing two sources familiar with the matter. The latest figure includes USD 43.6 billion in war-related costs through September 3, along with an additional USD 1.5 billion for extra fuel.
However, the Pentagon’s estimate does not represent a complete accounting of the financial cost of the conflict. According to one of the sources cited by CNN, the figure does not include the cost of repairing damaged US military bases and buildings. It also does not provide Congress with a detailed assessment of indirect military-operation costs.
Pentagon estimate higher than earlier figures
The latest estimate is higher than the USD 38 billion cost projected by the Congressional Budget Office (CBO) through August 1. It also exceeds the Pentagon’s earlier estimate of USD 37.5 billion in July. In its September 15 report titled Estimating the Cost of Combat Operations Against Iran, the CBO estimated that the Department of Defense had incurred approximately USD 38 billion in costs as of August 1.
The agency said its estimate covered operational, logistical and sustainment costs. These included replacing expended munitions and equipment lost in battle, increased flying hours, other military operations and higher fuel costs.
The CBO cautioned that its estimate was subject to “considerable uncertainty”, as it relied on government databases and public reports after the Department of Defense did not respond to its requests for information.
Conflict costs could rise further
According to the CBO, the cost of the conflict could continue to rise depending on the intensity of fighting.
The budget office estimated that another month of conflict would cost around USD 2 billion if violence remained at levels seen in May and June. Monthly costs could reach USD 3 billion if fighting returned to approximately the intensity seen in July.
“Monthly costs could be higher still if the violence escalated further,” the CBO said.
The Pentagon’s latest USD 45.1 billion figure comes as the financial burden of the conflict continues to increase, while several categories of potential expenditure remain outside the current estimate.
Missile-defence spending adds to cost
The CBO also identified the large expenditure on missile-defence interceptors as a major opportunity cost for the Department of Defense.
According to the budget office, such spending would leave the US with a reduced inventory of interceptors for several years.
The CBO’s USD 38 billion estimate also did not include costs borne by other parts of the federal government or certain expenses already accounted for in the federal budget.
Energy disruptions add wider economic impact
Beyond direct military spending, the conflict has also generated wider economic effects, particularly through disruptions to oil and natural-gas shipments through the Strait of Hormuz and shipping through the Red Sea.
According to the CBO, these disruptions have contributed to higher global energy prices, affecting crude oil as well as refined petroleum products such as gasoline, diesel and jet fuel.
The agency estimated that higher energy prices would put additional pressure on consumer inflation. It projected that, in the first quarter of 2027, inflation measured by the personal consumption expenditures (PCE) price index would be 0.5 percentage points higher than its February 2026 projection, while core PCE inflation would be 0.3 percentage points higher.
The CBO also estimated that higher energy prices had added 2.3 percentage points to the annualised rate of overall PCE inflation in the second quarter of 2026, when PCE inflation stood at 5.3 per cent.
US sought USD 87.6 billion in additional funding
The CBO said the US administration had requested USD 87.6 billion in supplemental appropriations in June, including USD 67.1 billion for the Department of Defense. Of that request, USD 42.3 billion appeared directly related to the conflict, according to the CBO.
At the same time, the budget office said it could not estimate potential additional costs linked to diplomatic operations and foreign aid. Such expenses would depend on the outcome of the conflict and could be spread across different areas of government spending.
The latest Pentagon estimate, communicated to lawmakers on Friday, therefore puts the reported cost of the conflict at USD 45.1 billion, while several potential expenses remain outside the current figure.
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