Washington, Sep 16: The US military campaign against Iran cost the Pentagon about $38 billion through July and could consume another $2 billion to $3 billion each month, according to the Congressional Budget Office.

The nonpartisan agency also warned that the conflict has depleted critical missile-defence stocks, increased energy prices and added to inflation across the American economy.

The CBO examined operational, logistical and economic costs associated with Operation Epic Fury, which began on February 28.

The initial phase lasted until a ceasefire took effect on April 8. President Donald Trump declared the ceasefire over on July 10 after attacks on tankers passing through the Strait of Hormuz.

The $38 billion estimate includes $21.7 billion to replace missiles and other munitions. It also covers $10.4 billion in additional flying hours, $2.7 billion in higher military fuel costs, $1.9 billion for equipment lost in battle and $1.5 billion in other operational expenses.

Replacing expended munitions was the largest single expense. The total included $13.1 billion for missile-defence interceptors and $7.3 billion for land-attack cruise missiles.

The estimate does not include the cost of repairing or rebuilding US military facilities damaged by Iranian attacks. It also excludes diplomatic operations, foreign assistance and the long-term cost of medical care and disability compensation for injured service members and veterans.

CBO said the Pentagon did not provide the information it requested. The agency relied instead on government databases and publicly available reports, leaving its findings subject to “considerable uncertainty”.

The report warned that the United States may have used between one-half and two-thirds of its missile-defence interceptor inventory since June 2025.

“Although DoD does not reveal the number of munitions it has on hand, a comparison of the reported expenditures of missile defense interceptors with the total numbers that DoD has purchased to date indicates that the United States has probably used between one-half and two-thirds of its inventory of those munitions since June 2025,” CBO said.

Rebuilding the stocks could take at least five years, even if the Pentagon accelerates procurement.

“The shortfall would become especially problematic if a conflict arose with an opponent whose arsenal included large numbers of ballistic and cruise missiles,” the report said.

CBO specifically identified China as possessing an arsenal that could play a major role in any military conflict involving Taiwan.

The conflict has also disrupted oil and natural gas shipments through the Strait of Hormuz and shipping through the Red Sea. CBO said the resulting increase in energy costs added 2.3 percentage points to the annualised inflation rate during the second quarter of 2026.

The agency projected that inflation in the first quarter of 2027 would be 0.5 percentage points higher than it had forecast before the war. Higher inflation is also expected to push up interest rates on US Treasury securities.

Defence Secretary Pete Hegseth told Congress in July that operations against Iran would cost $37.5 billion through September. The White House has requested $87.6 billion in supplemental funding, including $67.1 billion for the Pentagon. CBO said about $42.3 billion of the Pentagon request appeared directly related to the conflict.

Riyadh, Sep 16: Saudi air defences intercepted and destroyed a Houthi drone south of Mecca before it entered the prohibited airspace of the holy city, the Saudi-led coalition said.

Coalition spokesman Turki Al Maliki said the security of the Two Holy Mosques and pilgrims is a “red line,” adding that the coalition would not hesitate to take necessary measures to deter further Houthi attacks.

An official from the Houthis rejected the allegation on Wednesday.

“The claims about targeting Mecca are a worn-out lie that has been used before and no longer fools anyone,” Hazem al-Assad wrote on X.

Meanwhile, Houthis said on Tuesday that Saudi warplanes had carried out 52 airstrikes across five provinces over the past 24 hours, as cross-border hostilities between the two sides continued to escalate.

Houthi military spokesperson Yahya Sarea said in a statement posted on social media platform X that F-15 and Typhoon fighter jets carried out the strikes after taking off from air bases in the southwestern Saudi city of Khamis Mushait and the western city of Taif.

Sarea said the strikes hit the southwestern province of Taiz, northern Al-Jawf, central Al-Bayda, and the northern provinces of Saada and Amran. He alleged that schools, bridges, roads and other civilian infrastructure were among the targets.

Sarea said the strikes “will not go unanswered,” suggesting further Houthi retaliation against Saudi Arabia.

There was no immediate comment from Saudi authorities on the Houthi claims.

Separately, Houthi-run al-Masirah TV said on Tuesday that 3 civilians, including 2 children, were killed and 2 others wounded in airstrikes on the Dhubab and Maqbanah districts of Taiz province.

The broadcaster also reported further strikes on Tuesday on a government complex in Khadir district, southeast of Taiz province, saying there were casualties without providing further details.

The strikes followed Houthi missile and drone attacks on Khamis Mushait, Abha and Taif on Monday, which the Saudi-led coalition said injured 13 civilians. The coalition vowed a “responsible and firm” response.

The cross-border escalation comes amid a Houthi offensive launched on September 3 that has shifted front lines along Yemen’s Red Sea coast. The group captured the strategic port city of Mocha on September 10 before advancing into the Bab al-Mandab area and seizing Mayun Island at the heart of the strait on September 11.

Yemen’s conflict erupted in late 2014 when the Houthis seized Sanaa and much of northern Yemen, prompting a Saudi-led coalition to intervene in March 2015 in support of the internationally recognised government.

United Nations, Sep 15: UN humanitarians warned that hostilities in Yemen are forcing people to flee their homes, causing civilian casualties, and putting already stretched humanitarian operations under growing pressure.

Renewed fighting in Yemen has displaced at least 125,000 civilians since the start of September, said the UN Office for the Coordination of Humanitarian Affairs (OCHA) on Monday (local time).

The UN Human Rights Office has verified 40 civilian casualties — eight dead and 32 injured in the first two weeks of this month. Women and children account for half of those killed and more than half of those injured, reports Xinhua news agency.

OCHA said the United Nations and its humanitarian partners continue to respond, despite extremely difficult operating conditions, providing aid to thousands of households as of Saturday. However, supplies are critically low, and funding is falling short of needs.

“Humanitarian access and movements remain severely constrained due to insecurity,” the office said. “Humanitarian movements into and within several locations on Yemen’s west coast remain suspended, while key roads are restricted or impassable. OCHA once again calls on all parties to protect civilians, respect international humanitarian law, and facilitate safe and unimpeded humanitarian access.”

Earlier this month, Yemen’s government forces said that more than 500 soldiers were killed and about 1,500 wounded in month-long battles with the Houthis along the western coast, as the group mounted a sweeping advance toward the strategic Bab al-Mandab Strait.

In a statement carried by Al-Joumhouriya TV, the government’s National Resistance Forces said the casualties were recorded between August 9 and September 10, while claiming that more than 1,000 Houthi members were killed and thousands wounded. The figures could not be independently verified.

The statement said the fighting began with Houthi missile, drone and explosive-boat attacks before expanding from Hays in the southern part of the Red Sea province of Hodeidah to several fronts in neighbouring southwestern Taiz province.

The casualties came amid a sweeping Houthi offensive launched on September 3 that rapidly redrew front lines along Yemen’s Red Sea coast, with the group capturing several government-held areas in Hodeidah province and neighbouring Taiz province.