Bombs, billions, and household bills: How much is the US-Iran war costing America and its people? Here's all about the war's price tag

The US military said that as of mid-October, the cost of war with Iran had risen to $47 billion, reports The New York Times. The estimate excludes the cost of damage to military bases that were destroyed by Iran's drones and missiles.

The Congressional Budget Office said last month the US-Iran war could cost $2 billion to $3 billion per month.

The $47 billion bill includes $29 billion for replacing munitions, $6.1 billion for equipment replacement, and $11.9 billion in additional operational costs, as per an NYT report. In early September, the total cost of the Iran war was reported to be $43.6 billion.

With the US-Iran war entering its ninth month, President Trump has reiterated that if Iran disagrees with the deal, he might resume attacks on Iran post-midterm elections.

"We may do another little Epic Fury, or they'll agree," Trump told supporters during a rally in Florida.

CBS News reports, "The Defense Department's inspector general revealed Monday that the United States is facing a shortfall in ammunition as a result of its costly war in Iran. In a first-of-its-kind mandatory report to Congress, the inspector said that between Feb. 28 and June 30, Operation Epic Fury (OEF) had an estimated cost of $33.4 billion, with $22.3 billion of that spent on munitions alone."

The Trump administration dismissed the military shortage remark. In September, President Trump said that America has more than enough ammunition in its stockpile.

"We have virtually unlimited amounts of Mid to High Grade Ammunition, far more than we could ever use," he said.

In June, the Trump government requested $87 billion from Congress. The amount was demanded to cover the stockpile replacement cost and troop deployments in the US Central Command theater.

Democrats have asked Defense Secretary Pete Hegseth for an elaborate accounting of the war's cost ahead of the November 3 midterms.

US-Iran war cost per American household

Nearly $2,000, says Moody's Analytics report.

Economist Mark Zandi said that the hike in energy prices is troubling American households the most.

"A gallon of regular goes for $4.37, up from just under $3 before the war. Diesel is above $6, and jet fuel has nearly doubled. As winter approaches, the much higher price of home heating fuel is also adding to the costs."

The Moody's estimate shows that American consumers have paid $265 billion nationwide since the US-Iran war began in February - which is about $1,100 per household.

"Fixed mortgage rates rose from below 6 percent before the war to about 7.5 percent now. By our reckoning, the higher rates have cost the economy about $540 per household," he wrote.

The military operations expense adds up to about $360/household, according to Zandi's calculations.

"For lower- and middle-income Americans, it's tough, much more difficult. Their incomes on an after-inflation basis because of the war have come to a virtual standstill, and some are actually declining. Those folks, they don't own much stock, they may not even own a home, and they have a fair amount of debt. So, they're struggling, and the high energy costs - the fact that we're paying over $4 a gallon - it really matters to those folks," Zandi told Fox News.

US spending on wars post-9/11

The Watson School of International and Public Affairs' analysis report says that from 2001 to 2022, the US committed approximately $8 trillion to these wars, including $5.8 trillion in government funding and at least $2.2 trillion in estimated long-term care for veterans. The $8 trillion estimate excludes the cost of future interest payments, state and local government costs, private losses, and economic damage in other countries.

As per researchers' estimates, every $1 million spent on the US military backs about five jobs, whereas the same amount spent on education supports 13 jobs.

America's annual military budget crosses $1 trillion in 2026, with an additional $156 billion for military-related programmes from 2025 to 2029.

Financial fallout of US wars

World War II tops the list of most expensive wars the US has ever fought, amounting to $4.1 trillion-$4.7 trillion in constant inflation-adjusted dollars, followed by the Iraq War at $2.4 trillion, Afghanistan at $2.3 trillion, Vietnam at $844 billion, and the Gulf War at $116 billion. The ongoing Iran conflict has cost the US $47.1 billion so far.

FAQs

1. What is the current estimated cost of the US-Iran war as of mid-October 2023?
   As of mid-October 2023, the estimated cost of the US-Iran war has risen to $47 billion.
2. How much is the US spending per month on the conflict with Iran?
   The Congressional Budget Office estimates that the US-Iran war could cost between $2 billion to $3 billion per month.
3. How has the US-Iran war impacted American households financially?
   According to Moody's Analytics, the ongoing US-Iran war has cost American consumers approximately $1,100 per household since it began, with total costs reaching about $265 billion nationwide.