Finance & Capital Market

Iran war cost Israel $11.5bn in early estimate, says finance ministry

JERUSALEM
Iran war cost Israel $11.5bn in early estimate, says finance ministry

Israel's war ​with Iran ‌incurred 35 billion shekels ($11.52 ​billion) ​in budgetary expenses, ⁠with 22 ​billion shekels ​of that going to defence, reported Reuters citing ​the ​Finance Ministry on ‌Sunday.

The amount ​has ​already ⁠been added ​to the ​2026 ⁠budget, stated the report.

The US-Israel war with Iran incurred high economic costs, including a loss of GDP and an increase in state spending, some of which will only become fully clear in the future, reported The Times of Israel, citing the Finance Ministry.

The total cost of the government’s compensation plans for direct missile damage, loss of economic output for businesses, and unpaid leave for employees is estimated at 12 billion shekels, stated the report.

Another 1 billion shekels is being spent on civilian costs, including hospital operations, emergency response, and expenses for the Social Affairs Ministry, it added.