“Israeli” War Costs Mount Sharply

By Staff, Agencies 

Preliminary estimates indicate that the US-“Israeli” war on Iran has cost the “Israeli” budget approximately 35 billion shekels [$11.52 billion], including 22 billion “shekels” allocated to the security sector, with the amount already incorporated into the 2026 budget, according to the “Israeli” Finance Ministry.

In a statement on Sunday, the ministry confirmed that the government had approved additional emergency allocations in mid-March worth 2.6 billion shekels [$827 million] for urgent weapons procurement as the confrontation escalated.

According to the ministry’s estimates, the increased spending is expected to raise the fiscal deficit from the previously targeted 3.9% of GDP to a range between 4.9% and 5.6%.

The ministry also assessed that economic losses resulting from the war on Iran were around 9 billion “shekels” [$2.93 billion] per week.

In the same context, media reports citing Channel 12 said that the cost of 40 days of war on Iran and Lebanon could reach approximately $17.5 billion, including both military and civilian expenditures.

The “Israeli” Finance Ministry has estimated that the wars on Iran and Lebanon have cost “Israel” approximately $17.5 billion over the past 40 days, Anadolu reported on Thursday, citing Channel 12. The figure reflects combined military and civilian expenditures amid ongoing escalation on multiple fronts.

Direct military spending is estimated at around 40 billion “shekels” [$12.9 billion], while civilian costs, including compensation for affected businesses and local authorities, are projected at 13–14 billion “shekels” [$4.2–4.5 billion], bringing the total to roughly 54 billion “shekels” [$17.5 billion].

The ministry noted that the figures remain preliminary and do not account for future reconstruction costs or broader economic losses caused by the partial shutdown of the economy. To support military needs, an additional 7 billion “shekels” [$2.3 billion] has been allocated, covering weapons procurement, flight operations, reserve duty, and war-related damages.

Compensation under property tax is estimated at 12–13 billion “shekels”, alongside 1 billion shekels allocated for unpaid leave schemes and support to local authorities. 

Meanwhile, “Israeli” media reported about two weeks ago that fuel prices had surpassed 8 “shekels” per liter, triggering growing public anger amid mounting economic pressures.