US war with Iran could cost $2–3 billion per month — CBO
A US war with Iran at relatively low intensity could cost the US budget between $2 billion and $3 billion per month. This estimate was published by the nonpartisan Congressional Budget Office (CBO), CBS News reports.
According to CBO calculations, direct US spending on the war from February 28 to August 1 amounted to about $38 billion. This sum does not include the cost of repairing US bases in the region damaged during the conflict. Replacing expended munitions accounts for the largest share of the costs.
Spending on munitions and equipment
The CBO estimated the replacement of munitions expended by August 1 at $21.7 billion. Of that amount, $7.3 billion is for cruise missiles used for strikes against ground targets, $13.1 billion for missile interceptors used by missile defense systems, and another $1.2 billion for other munitions.
The office warned that significant use of missile interceptors to defend against incoming missiles would leave a reduced stockpile of such systems for several years. The CBO noted that this could be particularly problematic in the event of a conflict with an adversary possessing a large arsenal of ballistic and cruise missiles, including China in the event of a conflict over Taiwan.
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Another approximately $1.9 billion, according to the CBO estimate, will be needed to replace lost equipment, including a THAAD missile defense system radar destroyed by Iran. The cost of such a radar may amount to about $500 million. If the Pentagon decides to replace lost aircraft with newer versions, total equipment costs could rise to $3.3 billion.
Weapons stockpiles
According to the CBO, monthly costs could increase in the event of an escalation similar to that in July, when the sides repeatedly exchanged strikes. In July alone, the war cost the United States about $3 billion, according to the office's calculations.
A day before the CBO estimate was published, the Pentagon inspector general released a report stating that the Pentagon's Office of Acquisition and Sustainment concluded that the use of munitions in the conflict had caused a strategic shortage of stockpiles and exposed problems in the industrial base's ability to replenish arsenals. At the same time, the White House and the Pentagon downplayed concerns about dwindling weapons stockpiles. The US Department of Defense did not respond to CBO requests for information.
In June, the administration of President Donald Trump sent Congress a request for $87.6 billion in additional funding, of which $67 billion was intended for Department of Defense needs related to the war with Iran.
