16-09-2026
A nonpartisan Congressional Budget Office report says the six-month US war on Iran has already cost approximately $38 billion and is adding about $3 billion in costs each month. The conflict is also projected to raise US inflation by 0.5 percentage points during the first three months of 2027. The findings intensify criticism of the Trump administration over the war, which was launched by the United States and Israel in February and has disrupted global energy markets, contributing to higher prices and growing voter concern about the cost of living before the November midterm elections.
The estimate is broadly consistent with Defense Secretary Pete Hegseth’s July congressional testimony, when he estimated the war’s cost at $37.5 billion and urged lawmakers to significantly expand the already large US military budget. Hegseth also rejected claims that the conflict was becoming a “quagmire,” despite the war lasting longer and costing more than initially expected.
The report further warns that the conflict has strained US supplies of important munitions. Replenishing stockpiles could take as long as five years, potentially affecting the military’s ability to meet commitments elsewhere. The CBO estimate excludes borrowing costs and damage caused by Iranian attacks on US military installations in the Middle East, suggesting the total financial burden could be higher.
The report follows a Pentagon inspector general review that documented munitions shortages, production bottlenecks, and the loss of dozens of US aircraft. The Trump administration has rejected claims that military supplies are dangerously low and continues to argue that the war is justified. President Donald Trump has said oil prices will fall sharply once the conflict ends, while Pentagon spokesperson Sean Parnell maintained that the military has the resources needed to strike whenever the president orders it.
Entities: Iran war, United States, Israel, Congressional Budget Office (CBO), Donald Trump • Tone: analytical • Sentiment: negative • Intent: inform
16-09-2026
The CBS News live update describes escalating political, military and financial consequences of the U.S.-Iran conflict. The White House defended Defense Secretary Pete Hegseth after Rep. Thomas Massie of Kentucky introduced articles of impeachment, arguing that Hegseth participated in more than 90 days of hostilities without congressional authorization. Attorney General Todd Blanche praised Hegseth as “doing a phenomenal job” and rejected the characterization of the conflict as a war.
Congressional opposition to the administration’s military actions continued. The House voted 220-204 to limit President Trump’s authority to conduct further strikes against Iran, with seven Republicans joining Democrats. The measure’s prospects in the Senate remained uncertain, while earlier war-powers resolutions had stalled or been disputed by the White House.
The article reports that the conflict is imposing substantial costs on the United States. A military inspector general estimate cited in the introduction put the cost at $33.4 billion through mid-June. A later Congressional Budget Office report estimated that the conflict cost approximately $38 billion between February 28 and August 1 and could require another $2 billion to $3 billion per month. Most of the spending has involved replacing munitions, particularly interceptor missiles, whose use has reduced U.S. inventories for several years.
CBS News also obtained photographs showing extensive damage to U.S. facilities and equipment in the Middle East, including a destroyed E-3 Sentry aircraft at Prince Sultan Air Force Base in Saudi Arabia. Separately, the Coast Guard and FBI boarded a commercial tanker bound for Texas after a suspected foreign cyberattack, although no operational, safety or environmental consequences were reported. Iranian officials rejected President Trump’s reported signals about negotiations, saying talks would not occur until Iran’s conditions were met.
Entities: Iran-U.S. conflict, Donald Trump, Pete Hegseth, Thomas Massie, Todd Blanche • Tone: analytical • Sentiment: negative • Intent: inform
16-09-2026
The Congressional Budget Office estimates that the U.S. war with Iran cost the Pentagon $38.1 billion through Aug. 1, with an additional $2 billion to $3 billion expected for every further month of fighting. More than half of the spending has gone toward replacing missiles and other munitions, while increased military flight operations cost $10.4 billion and higher fuel prices added $2.7 billion. The conflict has also sharply depleted U.S. missile-defense inventories. The CBO estimates that American forces have used as much as two-thirds of the nation’s interceptors since June 2025, partly while defending Israel from Iranian attacks. Rebuilding those stocks could take at least five years, even if production increases.
The CBO also projects broader economic effects. Disruptions to oil and natural-gas shipments through the Strait of Hormuz, along with problems affecting Red Sea shipping, are expected to raise inflation. By early 2027, the war could add 0.5 percentage points to year-over-year personal consumption expenditures inflation and 0.3 percentage points to core PCE inflation. Fuel is expected to account for about 40% of the conflict’s effect on consumer prices.
The Pentagon’s inspector general separately estimated that the war cost $33.4 billion through June 29, including $22.3 billion for expended munitions, $7.4 billion in operating costs and $3.7 billion in equipment losses. Iranian attacks damaged hundreds of structures across eight Middle Eastern countries and destroyed or damaged numerous aircraft, including F-15E and F-35A fighter jets, refueling aircraft, helicopters and drones. The conflict also generated State Department evacuation costs and damage to diplomatic sites.
The reports are likely to intensify political debate over a war President Donald Trump initially said would last only weeks. Democrats are highlighting its effects on fuel, food and other prices, while Trump has justified the conflict as necessary to prevent Iran from developing nuclear weapons. The depleted missile inventories could also create serious risks in a future confrontation with China, including a conflict over Taiwan.
Entities: Congressional Budget Office (CBO), U.S. Department of Defense and Pentagon, Defense Department inspector general, Donald Trump, Brendan Boyle • Tone: analytical • Sentiment: negative • Intent: inform
