Washington, Sep 16 (V7N)- The United States has spent more than $38 billion on its ongoing war with Iran, with the Congressional Budget Office (CBO) warning that the cost could rise by at least $3 billion every month if the conflict continues.

According to an assessment released by the nonpartisan agency on Tuesday (September 15), U.S. military spending on the Iran war had exceeded $38 billion as of August 1. The total could increase further depending on the intensity and duration of the conflict, the Associated Press (AP) reported.

The CBO also warned that the conflict could affect U.S. inflation through the first quarter of 2027. Inflation could be about 0.5 percentage points higher than previously forecast, partly because of disruptions to energy supplies and international shipping.

The agency said disruptions to oil and natural gas shipments through the Strait of Hormuz, along with shipping interruptions in the Red Sea, are putting upward pressure on fuel and other commodity prices.

The assessment was prepared at the request of Brendan Boyle, the top Democrat on the U.S. House Budget Committee. Its estimate is broadly consistent with an earlier figure given by Defense Secretary Pete Hegseth, who told a Senate hearing that the war had cost approximately $37.5 billion.

A significant portion of the spending has gone toward replenishing weapons, ammunition and other military equipment used during the conflict. However, the CBO calculation does not include compensation for U.S. service members killed or wounded in action, or future medical and disability costs for veterans.

Boyle said the report highlights not only the human cost of the conflict but also the growing financial burden on U.S. taxpayers and its potential impact on household living costs.

The war, which began on February 28, has now entered its seventh month, according to the report, with no immediate indication of a swift resolution. The conflict has also emerged as a major issue ahead of the U.S. midterm elections, which will determine control of Congress.

Earlier in June, the White House requested an additional $87.6 billion for the war effort, including $42.3 billion in direct war-related costs. The CBO said that figure was roughly 10 percent higher than the Pentagon's own expenditure estimates.

The CBO cautioned that its assessment carries some uncertainty because the Pentagon did not provide the data requested for the analysis. The agency instead relied on government databases and publicly available reports.

Meanwhile, a report released Monday by the Pentagon's Inspector General said the conflict has also contributed to shortages in U.S. strategic military stockpiles.

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