The United States has spent more than $38 billion on military operations related to Iran since the conflict began, according to a new estimate from the Congressional Budget Office (CBO). The figure, which covers direct war costs, has reignited discussions about the financial burden of prolonged military engagements and the implications for European allies who have watched the escalation from across the Atlantic.
The CBO's calculation includes expenses for troop deployments, munitions, and logistical support, but it does not account for long-term veterans' care or interest on debt financing the operations. Analysts note that the true economic toll is likely higher, echoing patterns seen in previous US-led conflicts in the Middle East.
European security at stake
For European capitals, the cost figure is more than a distant statistic. The war has drawn in European nations through NATO commitments and shared security interests, particularly as Iran's proxies have targeted European shipping and infrastructure. The EU's recent €6.1 billion commitment to Ukraine for air defense and drones highlights how European budgets are already stretched, yet the Iran conflict adds another layer of pressure.
European defense ministries have watched with concern as the US has shifted military resources toward the Middle East, potentially reducing its focus on Europe. This has prompted renewed calls for the continent to increase its own defense spending, a theme that has gained traction in Berlin, Paris, and Warsaw.
The CBO report also comes at a time when Europeans are losing billions to inflation, making the opportunity cost of military spending a sensitive political issue. Governments face the challenge of balancing defense needs with domestic priorities, a dilemma that resonates from the Bundestag to the Élysée.
Transatlantic burden-sharing debate
The $38 billion figure is likely to fuel the long-running debate over burden-sharing within NATO. US officials have repeatedly pressed European allies to meet the 2% of GDP defense spending target, and the Iran war's cost may strengthen that argument. However, European leaders counter that their contributions go beyond financial metrics, citing intelligence sharing and diplomatic efforts.
Some European analysts argue that the US war in Iran is a cautionary tale about the limits of military intervention. "The financial strain is a reminder that security comes at a price, and that price is often paid by taxpayers," said a defense expert at the European Council on Foreign Relations. "European nations must decide whether they want to be passive observers or active shapers of their own security."
The CBO's estimate does not include indirect costs such as the impact on global oil prices, which have hit European consumers hard. The war has disrupted shipping lanes in the Strait of Hormuz, driving up energy costs and feeding inflation across the continent.
As the conflict grinds on, the financial burden is likely to grow. The CBO projects that additional spending could reach several billion more by the end of the fiscal year. For European policymakers, the message is clear: the cost of war is not confined to the battlefield, and the ripple effects are felt from Lisbon to Tallinn.
In the meantime, the debate over how to fund such expenditures continues, with some suggesting that taxing the ultra-wealthy could offset budget pressures. But for now, the $38 billion figure stands as a stark reminder of the price of conflict.
