“By August 1, 2026, the armed conflict with Iran (Department of Defense) has cost approximately 38 billion dollars,” the service report states.
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It adds that, depending on the intensity of military actions, if the conflict continues, monthly expenses could range from 2 to 3 billion dollars or more.
These expenses “could be even higher if the military actions escalate further,” the service added.
The report states that these figures reflect, among other factors, the costs of replacing expended ammunition and equipment lost in battles, as well as increased military fuel expenses.
The analysis was prepared in response to a request from House Budget Committee Chairman, Democratic leader Brendan Boyle, and other Democratic lawmakers.
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In July, Defense Secretary Pete Hegseth estimated that the war with Iran cost 37.5 billion dollars.
On Tuesday, the Congressional Budget Office found that the main economic impact of the conflict with Iran is related to inflationary pressure caused by disruptions in oil and natural gas supplies.
The service now forecasts that overall inflation in the country in the first quarter of next year will be 0.5 percentage points higher than was forecast in February. And core inflation, excluding volatile food and energy segments, is also likely to be 0.3 percentage points higher than previously forecast.
The report also notes that higher inflation rates will increase Treasury bond yields.
