Watchdog Details Iran War Costs as CBO Projects $38B Pentagon Price Tag

A U.S. government watchdog released its first report on the impact of the Iran war, acknowledging advanced weapons shortfalls and offering a public look at damage to American aircraft, bases and diplomatic outposts in the Middle East, according to The Associated Press. The report drew on information from the inspectors general of the Defense and State departments as well as the U.S. Agency for International Development. ^{[1] [1]}

The report, covering April 1 to June 30, said the U.S. war with Iran “has resulted in strategic inventory shortfalls and revealed industrial base bottlenecks for munitions resupply” for advanced weapons, the AP reported. It also acknowledged that Iranian strikes damaged and destroyed hundreds of buildings and other structures at U.S. bases across Kuwait, Bahrain, Qatar, the United Arab Emirates, Saudi Arabia, Iraq, Oman and Jordan. ^{[1] [1]}

The watchdog accounted for dozens of American aircraft and drones destroyed or damaged, including as many as 30 MQ-9 Reaper drones costing around $30 million apiece, and seven KC-135 refueling aircraft damaged or destroyed, AP reported. Eleven service members were listed as killed in action in Kuwait, Iraq, Jordan and Saudi Arabia, while additional deaths were listed as occurring during non-hostile events. ^{[1] [1]}

The Pentagon has repeatedly pushed back against reports of any munitions shortage, saying the U.S. military has all the weapons it needs, and President Donald Trump said in a social media post that the U.S. is producing more weapons than at any time in its history, according to AP. A separate nonpartisan Congressional Budget Office assessment released Tuesday said the war had cost the Department of Defense more than $38 billion through Aug. 1 and could continue costing up to $3 billion a month or more. ^{[1] [2] [2]}

The CBO estimate largely aligns with an earlier figure from Defense Secretary Pete Hegseth, who put costs at $37.5 billion in Senate testimony, AP reported. The Defense Department declined to respond to CBO’s request for information, a break from norms, and the budget office said its estimates drew on government databases and public reports and are “subject to considerable uncertainty.” ^{[2] [2]}