A congressional analysis released Tuesday indicates that the ongoing war with Iran is significantly worsening inflation and depleting American military reserves. The nonpartisan Congressional Budget Office (CBO) estimated that the six-month conflict has already cost $38 billion, with expenses projected to climb by an additional $3 billion each month.
The report further warns that the war is expected to increase inflation by 0.5 percentage points during the first quarter of 2027. This economic pressure comes as voters grow increasingly concerned about the cost of living ahead of the November midterm elections.
Brendan Boyle, a senior Democrat on the House Budget Committee who requested the study, condemned the conflict. “Donald Trump’s disastrous war in Iran has already taken the lives of brave American servicemembers and left others wounded,” Boyle said. “Beyond that human toll, this nonpartisan CBO report makes clear that the war has also cost American taxpayers tens of billions of dollars and counting, while continuing to drive up costs.”
Regarding logistical capabilities, the CBO found that the war has exhausted supplies of critical munitions, thereby straining the military’s ability to meet commitments in other regions. The report estimated that replenishing these stockpiles could take up to five years. This finding aligns with separate recent reports from Pentagon inspectors general, which detailed production bottlenecks and the loss of dozens of US aircraft.
The economic figures correspond with testimony from Secretary of Defense Pete Hegseth in July, during which he placed the war’s cost at $37.5 billion and urged Congress to approve a substantial increase in the military budget. Hegseth also rejected criticisms that the conflict was becoming a “quagmire,” despite Trump’s initial prediction that the war would last only a few weeks.
The CBO noted that its estimate excludes borrowing costs associated with the war or damages from Iranian attacks on US military installations in the Middle East. In response to reports of low munitions, the Trump administration has denied the severity of the shortages. President Trump claimed on social media that prices, except for oil, were falling sharply and predicted that oil costs would drop rapidly once the conflict ended.
Pentagon spokesperson Sean Parnell defended the military’s readiness, stating, “We have everything required to strike at the time and place of the president’s choosing,” following the release of reports highlighting the munitions shortfalls.
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