13.04.2026 11:42
According to The Times of Israel, the cost of Israel's approximately 40-day war that began with attacks on Iran has reached 35 billion shekels (11.5 billion dollars). A large portion of this amount consists of military expenditures, while compensation and civilian costs following Iran's retaliations have also strained the budget. It has been noted that the war has reduced economic growth and increased public spending, while the process was halted by a temporary ceasefire.
The economic toll of Israel's attacks on Iran has begun to emerge. According to a report by The Times of Israel based on the preliminary assessment of the Ministry of Finance, the cost of the war to the Tel Aviv administration has reached 35 billion shekels (approximately 11.5 billion dollars).
DEFENSE SPENDING AT ITS PEAK
The report stated that approximately 22 billion shekels (7.25 billion dollars) of the total cost stemmed from military expenditures made by the Israeli army, the Ministry of Defense, and other security agencies. It was noted that this amount had already been included in the defense spending under the 2026 budget.
COMPENSATION AND CIVIL EXPENDITURES INCREASING
The damage caused by Iran's retaliations, the losses of closed businesses, and the compensation package created for employees placed on unpaid leave is expected to be around 12 billion shekels (4 billion dollars). Additionally, it was stated that an extra budget of 1 billion shekels (329 million dollars) was used for social services and health expenditures.
NEGATIVE IMPACT ON THE ECONOMY
According to preliminary assessments, the war has led to a slowdown in growth in the Israeli economy and an increase in public spending. The expectation of a decline in gross domestic product has drawn attention.
TEMPORARY PAUSE WITH CEASEFIRE
The escalating conflicts following the attacks initiated by the US and Israel on February 28 were halted with a temporary ceasefire reached on April 8.