Tuesday, 02 January 2024 12:17 GMT

Pentagon Spending on Iran War Tops USD38.1B


(MENAFN) The US Congressional Budget Office (CBO) estimated Tuesday that America's war against Iran has cost the Department of Defense roughly $38.1 billion as of August 1, with each additional month of conflict likely adding $2 billion to $3 billion depending on the intensity of fighting.

In a letter to House Budget Committee Ranking Member Brendan Boyle, CBO Director Phillip Swagel said the total covers replacing expended munitions and lost equipment, increased flying hours, fuel expenses, and other costs tied to Operation Epic Fury, the campaign that began February 28 with joint US-Israeli strikes on Iran.

Munitions replacement made up the single largest expense, totaling $21.7 billion — including $13.1 billion spent on missile defense interceptors, according to the letter. Swagel noted that if hostilities remained at the lower intensity seen in May and June, an additional month of conflict would cost roughly $2 billion, but that figure would climb to $3 billion at the higher intensity levels recorded in July.

The war has also driven up global oil and fuel prices amid disruptions in the Strait of Hormuz, adding to inflation pressures and pushing up interest rate projections through 2027.

The CBO's figure comes in roughly 10% below the administration's supplemental funding request of $42.3 billion for directly related costs, and also falls short of Defense Secretary Pete Hegseth's July estimate of $37.5 billion through September. The letter attributed the gap to differing calculation methods and incomplete data from the Pentagon.

The US and Israel launched large-scale strikes against Iran on February 28, hitting government buildings, military installations, missile infrastructure and air defense systems. Iran retaliated with missile and drone attacks targeting Israel and US bases throughout the region. The conflict has since widened across the region, even as diplomatic efforts continue in an attempt to bring the fighting to an end.

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