Congressional estimates show rising monthly costs while Washington disputes concerns over ammunition shortages.
The continuing conflict between the United States and Iran has generated a mounting financial burden, while questions are growing over ammunition stocks, military damage and the wider economic consequences of continued fighting.
War Costs Reach US$38 Billion
The United States’ conflict with Iran had cost the U.S. Department of Defense approximately US$38 billion as of August 1, 2026. The estimate is close to the US$37.5 billion figure provided by US Defense Secretary Pete Hegseth during a Senate hearing on July 21. The Defense Department did not provide information to the CBO for the assessment, which relied instead on government databases and publicly available reports.
Monthly Spending Could Rise by US$3 Billion
The reports said the conflict could add approximately US$3 billion in costs for every additional month that fighting continues. The CBO estimate does not yet include borrowing costs associated with financing the conflict or the costs of more recent attacks on commercial ships in the Strait of Hormuz and US military facilities in the region. The CBO also estimated that the conflict could increase US inflation by 0.5 percent during the first three months of 2027.
Ammunition Replenishment Could Take Years
Rapid ammunition use has become a significant part of the estimated cost. The CBO said replenishing some depleted U.S. ammunition inventories could take at least five years, while an earlier Reuters report cited by IDNFinancials said the US had used nearly all of certain long-range precision missiles during the conflict. During the July 21 Senate hearing, Hegseth sought nearly US$90 billion in emergency funding to replenish ammunition and warned of critical shortages without additional funds.
White House and Pentagon Reject Shortage Concerns
US officials have disputed suggestions that ammunition constraints are undermining military readiness. White House spokesperson Anna Kelly said the US military had more than enough ammunition and supplies to meet its strategic objectives, while Pentagon chief spokesperson Sean Parnell similarly said the military had what it needed to carry out strikes when and where directed by the president. Their statements contrast with the CBO assessment that shortages of important ammunition, including missile interceptors, could limit the Pentagon’s ability to respond to another major conflict.
Hormuz Disruption Adds Economic Pressure
The conflict has also affected energy markets after attacks disrupted activity around the Strait of Hormuz, through which the reports said about 20 percent of the world’s oil passed before the war. Attacks affecting the strait and energy facilities in Gulf countries have contributed to higher energy costs for consumers and producers. The CBO’s calculations also come as US public debt surpassed US$40 trillion in August 2026, adding another dimension to concerns about the conflict’s longer-term fiscal burden.
The reported US$38 billion cost shows how rapidly the financial burden of the US-Iran conflict has grown, while assessments of ammunition availability remain disputed between congressional analysts and the US government. For Indonesians and Singaporeans, the conflict remains relevant because the supplied reports link disruption around the Strait of Hormuz with higher global energy costs, extending its economic effects well beyond the Middle East.
Sources: Batampos (2026) , IDN Financials (2026)
Keywords: US Iran War Cost, US Missile Stockpile, Pentagon Ammunition, CBO War Estimate, Strait Of Hormuz, Middle East Conflict
