Israeli economy reels under costs of 12-day war

Israeli media have acknowledged that the 12-day conflict has negatively impacted the regime’s economy, effectively pushing it back into financial strain.

According to Hebrew-language reports, this short war inflicted a blow on Israel’s economy.

During this period, military expenditures — including airstrikes and the extensive use of air defense systems — have been estimated at over 8 billion shekels (approximately $2.2 billion), and this figure represents only a portion of the total economic losses.

Iran’s missile strikes during the war led to widespread closures of businesses and disruptions to economic activities, especially in the services sector, including restaurants and small industries.

According to official data published by Globes, an Israeli financial newspaper, about 35% of businesses in the occupied territories reported a revenue decline of over 50% during the 12-day war.

In specific sectors such as restaurants and food services, up to 70% of businesses either closed or experienced major reductions in operations.

Furthermore, 35% of businesses reported losing over 80% of their workforce, highlighting the severe impact on the labor market.

Hebrew media have acknowledged that although the U.S. and some Western countries have provided significant financial support to Israel, these efforts are insufficient to offset the economic losses and the ongoing slowdown in commercial activities.

The continued threat of Iranian missiles and the widespread sense of insecurity have instilled fear and anxiety among investors, inflicting further damage on Israel’s economy.

Beyond military expenses, the recent war caused substantial damage to infrastructure and buildings. Israel’s compensation fund has so far allocated nearly 9.5 billion shekels (about $2.7 billion) to aid more than 40,000 affected individuals and businesses.

The recent 12-day war not only imposed direct military costs on Israel but also brought about wide-ranging economic and social consequences, delivering a heavier blow to the regime’s economy than previous conflicts.