Iran conflict costs surge to $45.1 billion: Pentagon tells Congress

The latest estimate is higher than the $38 billion cost projected by the Congressional Budget Office (CBO) through August 1 and also exceeds the Pentagon's earlier estimate of $37.5 billion in July | Image: Bloomberg

The ongoing US conflict with Iran has cost the Trump Administration an estimated $45.1 billion, according to a Pentagon estimate provided to the US Congress on Friday, CNN reported, citing two sources familiar with the matter.

According to CNN, citing the sources, the latest figure includes $43.6 billion in war-related costs through September 3, along with an additional $1.5 billion for extra fuel.

However, the Pentagon's estimate does not represent a complete accounting of the financial cost of the conflict.

According to one of the sources cited by CNN, the figure does not include the cost of repairing damaged US military bases and buildings and does not provide the US Congress with a detailed assessment of indirect military-operation costs.

The latest estimate is higher than the $38 billion cost projected by the Congressional Budget Office (CBO) through August 1 and also exceeds the Pentagon's earlier estimate of $37.5 billion in July.

The CBO, in its September 15 report titled Estimating the Cost of Combat Operations Against Iran, estimated that the Department of Defense had incurred approximately $38 billion in costs as of August 1.

The agency said the estimate covered operational, logistical and sustainment costs, including replacing expended munitions and equipment lost in battle, increased flying hours, other military operations and higher fuel costs.

The CBO cautioned that its estimate was subject to "considerable uncertainty", as it relied on government databases and public reports after the Department of Defense did not respond to its requests for information.

According to the budget office, the cost of the conflict could continue to rise depending on the intensity of fighting. It estimated that another month of conflict would cost around $2 billion if violence remained at levels seen in May and June, while monthly costs could reach $3 billion if fighting returned to approximately the intensity seen in July.

"Monthly costs could be higher still if the violence escalated further," the CBO said.

The Pentagon's latest $45.1 billion figure therefore comes as the financial burden of the conflict continues to increase, while several categories of potential expenditure remain outside the current estimate.

The CBO had also noted that its $38 billion figure did not include costs borne by other parts of the federal government or certain expenses already accounted for in the federal budget.

It also identified the large expenditure of missile-defence interceptors as a major opportunity cost for the Department of Defense, saying the spending would leave the US with a reduced inventory of interceptors for several years.