The Congressional Budget Office estimates the Trump administration’s hostilities with Iran cost U.S. taxpayers about $38 billion in the first five months, driven by munitions and equipment replacement, increased flight hours, other operations and fuel. CBO says each additional month will add at least $2–3 billion, with higher costs if the conflict escalates. It warns disruption to oil and gas shipments through the Strait of Hormuz will raise U.S. inflation: the Fed’s preferred inflation gauge co

The Congressional Budget Office estimates the Trump administration’s hostilities with Iran cost U.S. taxpayers about $38 billion in the first five months, driven by munitions and equipment replacement, increased flight hours, other operations and fuel. CBO says each additional month will add at least $2–3 billion, with higher costs if the conflict escalates. It warns disruption to oil and gas shipments through the Strait of Hormuz will raise U.S. inflation: the Fed’s preferred inflation gauge could be 0.5 percentage point higher in early 2027 versus prior projections, with core PCE about 0.3 percentage point higher. The report adds the war has depleted U.S. ammunition stocks, some of which may take more than five years to replenish, potentially weakening U.S. ability to respond to other major conflicts; a future high-volume missile/ammunition conflict could strain defense production capacity and inventory replenishment rates.