Lates News

The U.S. Congressional Budget Office (CBO) said that in the first five months since the Trump administration went to war with Iran, it has brought about approximately $38 billion in direct costs to U.S. taxpayers. The CBO said these expenditures mainly come from the consumption of munitions and equipment replenishment, increased flight missions, other military operations, and fuel costs. The report estimates that for every additional month the war continues, the United States will add at least $2 billion to $3 billion in costs, and if the conflict escalates, costs could rise further. The CBO also said that due to disruptions to oil and natural gas transportation through the Strait of Hormuz, the war will push up U.S. inflation, and it is expected that by early 2027 the inflation gauge watched by the Federal Reserve will be 0.5 percentage points higher than previously forecast, while core PCE inflation will also be 0.3 percentage points higher. In addition, the CBO said the war has depleted U.S. munitions stockpiles, and some inventories may take more than five years to replenish, which could weaken the United States' ability to respond to other major conflicts. The report pointed out that if a major conflict requiring large reserves of missiles and munitions occurs in the future, U.S. defense industrial production capacity and the pace of stockpile replenishment could come under pressure.