While military action in Iran has dragged on longer than the White House initially estimated, President Trump is still insistent that, in the grand scheme of things, the conflict doesn’t even constitute a war.
But the cost of the military intervention—discounting the broader macroeconomic effects arising from supply chain upheaval—is still high, and growing. A new report from the Congressional Budget Office (CBO) released yesterday found that as of August 1, 2026, the armed conflict with Iran has cost the Department of Defense approximately $38 billion.
These funds reflect the cost of replacing expended munitions and equipment lost in battle, the CBO wrote, as well as increased flying hours, increased fuel costs, and “other operations.”
The estimate doesn’t include spending already budgeted for, such as the basic running costs of the military involved in the conflict. It also doesn’t take into account increased costs for other parts of the federal government, such as increased fuel prices paid by the postal service.
