Iran war increasing inflation, straining US munitions: congressional report

What the report says

A nonpartisan Congressional Budget Office report says the U.S. war in Iran is adding to inflation and putting pressure on weapons inventories, according to Al Jazeera. The report, requested by Democratic Rep. Brendan Boyle, estimates that the six-month conflict has cost about $38 billion so far and is increasing expenses by roughly $3 billion a month.

Al Jazeera reported that the CBO projected the war could raise inflation by 0.5 percentage points in early 2027. The same report also said depleted munitions stocks could take as long as five years to refill, underscoring concerns about the military’s ability to sustain operations while meeting commitments elsewhere.

The article said the findings come amid growing criticism of the Trump administration’s handling of the conflict, which began in February and has disrupted energy markets and pushed up prices. It noted that Defense Secretary Pete Hegseth had given a similar cost estimate in congressional testimony in July. The report did not include borrowing costs or the impact of Iranian attacks on U.S. bases.

Al Jazeera also reported that the administration has rejected claims of severe munitions shortages and said it believes prices will ease after the fighting ends. More broadly, the piece places the report in a larger debate over war spending, inflation and military readiness.