“Israel” Faces Escalating Economic Strain Amid War on Iran
By Staff, WSJ
A report by The Wall Street Journal reveals that “Israel” is facing a growing financial crisis as a result of its ongoing military confrontation with Iran, with the cost of war estimated at hundreds of millions of dollars each day.
These soaring expenses are fueling doubts over “Israel’s” ability to sustain a prolonged military campaign.
A major share of this cost is attributed to the deployment of advanced missile defense systems to intercept Iranian retaliatory strikes. Analysts estimate that the daily expenditure on these interceptors alone could reach up to $200 million.
Additional costs include aerial strikes, munitions, and extensive damage inflicted on infrastructure by Iranian missile attacks, with early estimates placing reconstruction expenses at a minimum of $400 million.
Despite claims from “Israeli” officials that the war may last two weeks, Prime Minister Netanyahu remains fixated on long-term political objectives, such as undermining Iran’s legitimate and peaceful nuclear program—an effort widely seen as both illegal and doomed to fail given Iran’s sovereignty and international legal standing.
Economic experts inside “Israel” warn that the longer the war continues, the more dangerous the financial consequences become. Former central bank governor Karnit Flug noted that a drawn-out conflict would have drastically different—and far more damaging—impacts than a brief one.
Iran’s deterrence capabilities have reshaped the cost of war. The report highlights that Iran’s missile retaliation—over 400 launched in recent days—has revealed the steep cost of attempting to neutralize such firepower. Each David’s Sling interceptor costs about $700,000, while the Arrow 3 system, designed to shoot down ballistic missiles in space, costs as much as $4 million per launch. Even the older Arrow 2 comes with a $3 million price tag.
Operating advanced fighter jets like the F-35 on long-distance missions targeting Iran, located more than 1,600 kilometers away, adds further expense. Security experts say each jet costs roughly $10,000 per flight hour, with fuel, guided weapons and logistical support pushing the price even higher.
Even “Israeli” academics are acknowledging this reality. Zvi Eckstein from Reichman University warned that a full month of war could cost Tel Aviv more than $12 billion—a staggering figure for an entity now facing widespread shutdowns, grounded air traffic, and an increasingly nervous business sector.
International credit agencies have issued warnings about “Israel’s” economic outlook, while markets appear to be wrongly assuming the conflict will be short-lived. Meanwhile, Iran’s accurate targeting has pierced the myth of “Israel’s” military superiority. Engineers are reporting damage on a scale not seen in decades, with even a single tower in "Tel Aviv" costing tens of millions to repair.
Despite heavy military spending, the broader “Israeli” economy appears increasingly vulnerable. Iran’s counterstrikes have forced the closure of the entity’s main airport and widespread shutdowns of businesses, with only essential services permitted to continue. While S&P Global has issued a warning, it has not yet downgraded “Israel’s” credit outlook. Financial markets seem to be pricing in a short war, though that may prove overly optimistic.
On the ground, Iranian precision strikes have delivered an unexpected psychological and material blow. Engineers and rescue teams describe scenes of destruction not seen in decades. One structural expert estimated that repairing a single new high-rise in central Tel Aviv would cost tens of millions of dollars.
More than 5,000 “Israeli” settlers have been evacuated from missile-hit neighborhoods, and entire industries have come to a halt. As Iran continues to assert its defensive strength with strategic precision, it is becoming increasingly clear that “Israel’s” war effort is exacting a heavier toll on itself than on its adversary.
Iran’s military response has not only challenged “Israel’s” security posture but also exposed significant weaknesses in its economy and infrastructure. With rising operational costs, shaken public morale, and mounting uncertainty, this war may prove far more burdensome for Tel Aviv than initially anticipated.
