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Israel estimates $3 billion damage from war with Iran.
ByAinvest
Friday, Jun 27, 2025 9:22 pm ET1min read
Israel estimates $3 billion damage from war with Iran.
June 19, 2025The cost of damages from Iran's missile and drone attacks on Israel has been estimated to exceed $3 billion, according to recent reports. The war, which lasted for over 12 days, has caused extensive destruction and disruption, with Israel's economy bearing a significant burden.
The Tax Authority's compensation department, led by Amir Dahan, has calculated the property damage to be around double the sum of claims stemming from the October 7 attack and all subsequent days. This amounts to approximately NIS 5 billion ($1.47 billion) [1].
The estimated damage includes funds needed to repair missile-hit buildings and compensation for local businesses. The Israeli Finance Minister, Bezalel Smotrich, has stated that the total cost of the war could reach as high as $12 billion [2].
The Israeli economy has been severely impacted, with schools and businesses forced to close due to the conflict. The Bank of Israel's Governor, Amir Yaron, has estimated the war's cost to be around $6 billion, which is approximately 1% of Israel's GDP [2].
The war has also led to a significant increase in Israel's budget deficit. Experts have suggested that the conflict could cost Israel up to $20 billion, directly and indirectly affecting the country's production activities [3].
The number of Israelis who have filed for compensation has exceeded 36,465, with many residences damaged or destroyed by the Iranian attacks [3]. The Israeli government is considering various measures to cover the widening budget deficit, including cutting public spending, increasing taxes, or resorting to borrowing.
The war has highlighted the significant economic challenges Israel faces, with the country already stressed by the cost of multiple conflicts. The extensive destruction and financial burden underscore the need for effective conflict resolution and economic recovery strategies.
References:
[1] https://www.timesofisrael.com/cost-of-damages-from-iran-war-forecast-at-double-october-7-and-ensuing-attacks/
[2] https://www.financialexpress.com/world-news/israel-reveals-iranian-missile-strikes-caused-3-billion-in-damage-never-in-our-history/3893992/
[3] https://www.aa.com.tr/en/middle-east/israeli-economy-facing-challenges-as-12-day-conflict-with-iran-leaves-country-with-billions-in-economic-losses/3611311
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