Israel suffered $3 billion in direct damages from Iran’s missile and drone strikes during a 12-day conflict, according to the country’s Finance Ministry. This marks the most financially damaging assault in Israel’s history, affecting homes, infrastructure, and key economic assets.
What Caused the Damage?
Iran launched a high-volume, high-precision missile campaign that overwhelmed Israeli defenses. The strikes targeted major cities like Tel Aviv, Haifa, and Be’er Sheva. Civilian areas, including schools, hospitals, and tech campuses, sustained heavy damage.
The Economic Breakdown
The Israeli Tax Authority estimates that the country will need 10 billion shekels (about $3 billion) for property repairs and business compensation. This includes the rebuilding of homes, public buildings, and commercial zones, along with payments to individuals affected by the war.
Defense Costs Not Included
These numbers do not account for military expenses. Israel reportedly spent nearly 1 billion shekels ($285 million) per day on air defense systems. Total costs, including military spending, could exceed $12 billion once fully assessed.
Largest Financial Impact in Israel’s History
Officials state this is the costliest event ever caused by an external attack on Israel. The Tel Aviv Stock Exchange was severely damaged, and operations in key sectors like oil refining, biotech, and finance were disrupted for days.
How the Government Is Responding
More than 5 billion shekels (around $1.5 billion) in compensation is being distributed to individuals and businesses. Emergency relief teams are prioritizing damage assessment and reconstruction in the hardest-hit areas.
What Happens Next?
Israel faces possible budget reallocations to fund repairs and military replenishment. Analysts suggest cuts in public services or increased borrowing may be necessary. Economists warn of reduced growth forecasts and long-term economic strain.
Global Impact
The U.S.-led military support operation, known as “Operation Midnight Hammer,” cost over $2 billion. This reflects how the financial consequences of this regional conflict are stretching beyond borders.
Conclusion
The Iran-Israel conflict left behind massive destruction, with Israel suffering $3 billion in direct damage and even higher indirect costs. The event has triggered a nationwide recovery effort, while raising serious questions about defense readiness and economic resilience.
