Israel has suffered devastating economic losses over the past 20 months due to ongoing military operations, including a 12-day war with Iran. Official estimates reveal that the total cost of these conflicts has reached $78 billion.
🔻 Iran War Alone: $12 Billion in 12 Days
According to a former Israeli defense ministry advisor, the short but intense war with Iran alone cost Israel an estimated $12 billion, driven by both military and civilian damages.
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$275 million in direct operational costs
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$275 million in compensation for destroyed properties
🧨 Broader Conflict: Gaza & Lebanon
Since October 2023, Israel has been engaged on multiple fronts, particularly in Gaza and southern Lebanon, where direct losses are estimated at $66 billion. Infrastructure damage, daily operational costs, and economic paralysis have severely affected vital sectors.
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300,000 reservists were called up, costing around $30 million daily
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Over 15,000 Israelis have been displaced and are living in shelters or hotels
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40,000+ compensation claims were filed, with expectations of reaching 50,000
🏚️ Corporate Collapse & Tourism Crash
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60,000 businesses declared bankruptcy
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The tourism sector lost $3.4 billion amid airport shutdowns, safety concerns, and soaring insurance rates
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Foreign and domestic investment plummeted due to instability
💸 Defense Systems & Budget Pressure
The financial strain is exacerbated by the high cost of operating Israel's advanced defense systems:
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Iron Dome missile: $40,000 per launch
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David’s Sling missile: $700,000 per launch
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F-35 flight hour: $10,000
These massive defense expenditures are beginning to threaten funding for critical civilian services, pushing Israel’s economy into uncharted territory.
📉 Investor Confidence at Risk
Perhaps the most dangerous loss isn’t monetary, but investor confidence, as markets increasingly view Israel as a high-risk environment.
