CBO: Cost of operation against Iran reaches $38 billion for the Pentagon

The US Congressional Budget Office (CBO) has released its report regarding the cost of the conflicts within the scope of the military operation against Iran to the US Department of Defense. According to the report, the operational cost of the campaign, launched at the end of February under the name "Operation Epic Fury," reached approximately $38 billion as of August 1.

The CBO evaluated the costs under four main headings: operational expenditures, opportunity costs, economic impacts, and potential additional expenses. The report stated that the bill stems from the replenishment of consumed ammunition, equipment lost in combat, increased flight hours, field operations, and rising fuel expenses.

The report, which points out that costs will increase further if the conflicts continue, projected that depending on the level of violence, each additional month could bring an extra burden of between $2 billion and $3 billion to the US; it was noted that this amount could reach higher levels in the event of an escalation.

The report emphasized that one of the most significant opportunity costs for the Pentagon is the air defense missiles expended. It was stated that the dwindling stocks could weaken the US inventory for several years, which could create security risks, particularly in potential crises with countries possessing extensive ballistic and cruise missile capabilities.

In its assessment, the CBO also included that disruptions to shipments in the Strait of Hormuz and the Red Sea have increased crude oil, gasoline, diesel, and jet fuel prices on a global scale. It was noted that rising energy and logistics costs are creating upward pressure on consumer prices.

The report stated that in the first quarter of 2027, the personal consumption expenditures (PCE) price index inflation is expected to be 0.5 percentage points higher than previous estimates, and core PCE inflation is expected to be 0.3 percentage points higher. It was noted that the high inflation resulting from the conflict has also pushed up Treasury bond yields.

It was reported that potential additional costs, such as diplomatic operations and foreign aid, depend on the final course of the conflict, and therefore, a clear calculation could not be made for these items.