US congressional assessment warns of inflation, weapons shortages as war against Iran runs up $38-billion bill

The war against Iran has cost the US at least $38 billion through the end of July and is expected to further fuel inflation, while the depletion of key weapons stockpiles could constrain Washington's ability to respond to another major confrontation, a congressional assessment shows.

The assessment was released by the Congressional Budget Office (CBO) on Tuesday, with the office warning that the direct costs of the aggression that was launched by the United States and the Israeli regime on February 28, could continue rising amid Washington’s continued violations against the Islamic Republic and Tehran’s ongoing retaliation.

Munitions account for most of the spending, with another $2 billion to $3 billion expected to be spent each month, it said.

Damage to US bases excluded

The sheer estimate emerged even without taking into account the damage that the Iranian reprisal has been inflicting on American outposts throughout the West Asia region.

The CBO, meanwhile, warned that the shortfall afflicting US inventories of missiles and air-defense weapons could become particularly serious, citing Iran’s possession of a significant number of missiles.

The agency also said rebuilding depleted weapons stocks could take five years or longer.

"Missile defense interceptors are in short supply because they have been produced at relatively low rates,” it noted, saying the US Department of War had a “limited” inventory of such missiles.

A Department of War inspector general report issued on Monday had similarly found that the expenditure of munitions against Iran had "resulted in strategic inventory shortfalls."

The CBO said Patriot and SM-6 interceptors cost roughly $4 million each, while THAAD interceptors cost about $12 million and SM-3 interceptors can cost roughly $28 million apiece.

Inflation, long-term costs

The CBO estimated that the war could add roughly half a percentage point to the US inflation rate early next year, largely because of higher energy prices resulting from supply disruptions.

The Islamic Republic has closed the strategic Strait of Hormuz in retaliation for the aggression, besides directing its reprisal against the US’s logistical network in the region among other hostile targets.

The eventual cost is also expected to exceed the current $38 billion estimate, the CBO cautioned, even without factoring in the cost incurred as a result of Iranian retaliatory strikes against US interests in countries such as Bahrain, Kuwait, Qatar, and Jordan.

‘Not a real war-cost analysis’

The agency also excluded long-term medical care and disability payments for wounded veterans amid reports that the Iranian reprisal has injured more than 800 US troops.

"Counting munitions expended while leaving veterans' care and benefits is not a real war-cost analysis," Rep. Mark Takano said. "It is a bill sent to veterans and taxpayers later."

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