How Much Does It Cost Israel to Intercept Each Wave of Iranian Missiles?

Haaretz estimates that the cost of intercepting each wave of Iranian missiles launched toward Israel since last Friday may reach approximately 1 billion shekels (US $287 million).

Israel deploys several missile defence systems, including the Iron Dome, David’s Sling, and the Arrow (Hetz) system in both its Arrow-2 and Arrow-3 variants. It also benefits from the American THAAD system, though it relies primarily on the Arrow system to neutralise long-range threats.

According to Israel’s economic daily Globes, the Arrow-2 system intercepts ballistic missiles within the Earth’s atmosphere, while Arrow-3 intercepts them beyond the atmosphere.

The report notes that:

“Both systems are designed to intercept long-range ballistic threats, with differences in altitude. The goal is to neutralise missiles as far from Israeli territory as possible. Interception outside the atmosphere pushes the threat away entirely.”

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Interception Costs: A Strategic Dilemma

While operationally effective, the financial burden of maintaining these systems is becoming increasingly unsustainable. According to Globes:

• Each Iron Dome interception costs around $30,000.
• David’s Sling costs approximately $700,000 per interception.
• Arrow-2 intercepts cost around $1.5 million each.
• Arrow-3 interceptions cost nearly $2 million per missile.

This high financial toll has become a growing concern for Israel’s military planners, particularly as the volume of incoming projectiles continues to rise.

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400 Missiles and Counting

The Israeli Government Press Office stated on Tuesday that Iran has launched over 400 ballistic missiles and hundreds of drones since the beginning of the confrontation on Friday. Approximately 35 missiles have successfully landed inside Israeli territory, though no details were provided on the exact impact sites.

When asked whether Israel’s air defence systems were nearing their operational limits, Boaz Levy, CEO of Israel Aerospace Industries, responded:

“No state has ever endured a wave of ballistic missile attacks on the scale that we’ve faced.”

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Effectiveness Under Scrutiny

Israel’s Ministry of Defence estimates the interception success rate of the Arrow-3 system at 90%, while the U.S.-made THAAD system has a lower effectiveness rate—around 40%.

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Context: Israel’s Aggression and Iran’s Retaliation

Since Friday, Israel has been conducting a wide-scale military campaign against Iran, targeting nuclear facilities, military compounds, and civilian infrastructure. The campaign has included the assassination of senior Iranian military leaders, including the commander of the Islamic Revolutionary Guard Corps and the Chief of Staff, as well as prominent nuclear scientists.

In response, Iran launched a series of coordinated missile attacks, causing unprecedented damage across several Israeli cities and triggering ongoing waves of confrontation.

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