Israel reveals multi-billion-dollar bill for war with Iran

Smotrich announced that the direct economic damages from the war with Iran range between $1.22 billion and $1.35 billion, and added that the total cost of the war could reach approximately $5.4 billion.

According to Smotrich's statements, which were broadcast on Israel’s Channel 14, the financial scope of this conflict has gone far beyond initial expectations.

Firstly, the direct damage to infrastructure, facilities, properties, and key industries in Israel is estimated at between $1.22 and $1.35 billion. This figure, which includes destruction caused by Iranian missile and drone attacks on critical points in Tel Aviv, Haifa, and other central areas, represents only a fraction of the real cost of the war.

Secondly, the Israeli cabinet's overall estimate suggests that the total cost of the war could climb to $5.4 billion—a figure that not only puts pressure on the national budget but is also expected to manifest in a budget deficit, economic slowdown, and increased insurance and tax rates.

In addition, the thousands of compensation claims filed by Israeli citizens further reveal the depth of the war’s impact on Israeli society. These claims indicate that the damage extended not only to the military and infrastructure but also to the daily lives and psychological security of the population.

In summary, the published data shows that although Israel considers the war militarily over in the short term, its economic consequences are only beginning. According to many analysts, the cost of war is no longer merely political or military—it is now intertwined with the regime’s economic and social fabric, a reality that may play a more decisive role in shaping the future balance of power in the region.