Big Take: How Much Is the Hormuz Blockade Costing the US?

The Iran War and the US blockade of the Strait of Hormuz are expected to be a major topic at the upcoming UN General Assembly, as President Trump meets with Gulf leaders. Houthi attacks in Saudi Arabia and rising energy prices highlight the escalating global impact of the conflict. The Pentagon's latest estimates indicate the war has cost the US more than $43 billion.

Bloomberg Global Defense Editor Gerry Doyle and Bloomberg Economics Defense Lead Becca Wasser discussed the conflict's financial implications on the "Big Take" podcast. They detailed the increasing cost of the six-month-long US blockade of the Strait of Hormuz, the depletion of US munitions stockpiles, and the growing strain on military personnel.

The ongoing conflict is significantly impacting the US's ability to project power globally. The naval blockade, a key tool in the current strategy, is stretching the American military's capabilities to their limit, exhausting troops, and weakening Washington's global standing, including in Asia. The Congressional Budget Office reported on September 15, 2026, that the war had directly cost US taxpayers approximately $38 billion in its first five months. This amount covers the replacement of expended munitions and equipment, increased flying hours, other operations, and higher fuel costs.

The CBO also projected that the war would push inflation up by about 0.5 percentage points by early next year. The financial and operational drain on military resources underscores the high daily cost, not only in dollars but also in America's capacity to respond to other global challenges. As of August 1, the total cost of the war was roughly $38 billion, according to the CBO. The naval buildup since January has resulted in over $7.1 billion in ship operating costs, with the latest blockade alone racking up an estimated $2 billion for at least 28 Navy ships.

This immense financial and strategic burden raises concerns about how the war has diminished the US's ability to defend itself in future conflicts and maintain its deterrent posture in regions like the Indo-Pacific, where competing with nations like China and deterring a potential invasion of Taiwan are critical. The administration asserts its ability to maintain the blockade indefinitely, with President Trump emphasizing Iran's desire for a deal and his sole authority to decide on direct US engagement.