According to The Wall Street Journal, the ongoing war against Iran is costing Israel hundreds of millions of dollars per day. This financial burden could ultimately limit Tel Aviv’s ability to sustain a long-term military campaign.
The report cites experts who say the largest single expense is the cost of intercepting Iranian missiles, estimated at anywhere from tens of millions to $200 million per day. This figure includes the deployment of Israel’s missile defence systems and the use of advanced weaponry.
In addition to missile interception, the operation’s cost is significantly increased by the use of fighter jets, munitions, and fuel. The article also highlights the unprecedented level of physical destruction across Israeli cities, noting that reconstruction and damage repairs could cost at least $400 million.
Escalating Costs and War Fatigue
Israeli officials have stated that the military campaign could continue for another two weeks, yet Prime Minister Benjamin Netanyahu has shown no intention of halting operations until his stated goals are achieved—namely, the elimination of Iran’s nuclear programme, its ballistic missile production capabilities, and its strategic arsenal.
It is worth noting that Netanyahu is currently wanted by the International Criminal Court (ICC) on charges of war crimes and crimes against humanity in Gaza.
Karnit Flug, former Governor of the Bank of Israel and now a senior fellow at the Israel Democracy Institute, told the paper that the true cost of the war depends entirely on its duration.
“A one-week war is one thing. A two-week or month-long war is something entirely different.”
Iran Launches Over 400 Missiles
The report, filed from Tel Aviv by journalist Anat Peled, notes that Iran launched more than 400 missiles at Israel within a single week.
Israel’s jointly developed David’s Sling missile defence system has been activated repeatedly to intercept incoming threats, including short, medium, and long-range missiles, as well as drones.
But each deployment of the system is costly. According to Yehoshua Kalisky of the Institute for National Security Studies in Tel Aviv, activating the system—assuming it uses the minimum of two interceptors—costs approximately $700,000 per use.
Keeping Fighter Jets Airborne Is Another Cost Driver
Israel has also committed dozens of warplanes, including F-35 stealth fighters, to round-the-clock patrols over targets located more than 1,600 kilometres from Israeli territory.
Each hour of flight for a single aircraft costs around $10,000, factoring in fuel, maintenance, and the cost of deploying weapons such as JDAM (Joint Direct Attack Munitions) and heavy MK-84 bombs.
Tzvi Eckstein, head of the Aaron Institute for Economic Policy at Reichman University, says the daily cost of war with Iran far exceeds previous conflicts, including those with Gaza and Hezbollah in Lebanon.
A Month-Long War Could Cost $12 Billion
The Aaron Institute estimates that a 30-day war against Iran could cost Israel roughly $12 billion. While military spending has already surged since the start of hostilities, some economists told the Wall Street Journal they do not yet foresee an immediate economic recession in Israel.
Nonetheless, the paper confirms that major sectors of the Israeli economy have ground to a halt. In recent days, only essential workers have been allowed to report for duty, while businesses—including restaurants and retail chains—have shut down in large numbers.
Unprecedented Structural Damage from Iranian Missiles
Israeli engineers say the scale of damage caused by Iranian ballistic missiles surpasses anything seen in Israel’s past wars.
Eyal Shalev, a structural engineer brought in to assess the damage, said:
“Hundreds of buildings have been either destroyed or severely damaged. Reconstruction will cost hundreds of millions.”
He estimated that repairing a single high-rise building in central Tel Aviv, recently struck by Iranian missiles, would cost tens of millions of dollars alone.
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