Tel Aviv, Israel

Israel has incurred economic losses estimated at 17 billion shekels (approximately $5 billion) following 12 consecutive days of sustained missile and drone attacks launched by Iran. The ongoing conflict, described by military analysts as one of the most intense cross-border escalations in the region’s recent history, has affected both military operations and civilian infrastructure.

Military Spending Mounts

According to defense sources, Israel has spent an average of 2.75 billion shekels per day during the conflict, primarily on Iron Dome interceptors, aerial defense systems, munitions, and reserve force mobilization. These figures bring the total cost of military operations to over 33 billion shekels ($8.7 billion) since the start of the Iranian offensive.

Though the 17 billion shekel figure cited in several initial assessments may reflect specific aspects such as infrastructure or short-term costs, the full financial toll is expected to be significantly higher.

Critical Infrastructure Targeted

Several key civilian and government facilities have sustained major damage. The Weizmann Institute of Science, one of Israel’s top research institutions, was struck during the attacks, with early damage estimates placed at over 2 billion shekels ($574 million). In Be’er Sheva, Soroka Medical Center was also targeted, leaving dozens injured and critical parts of the hospital inoperative.

Insurance and compensation bodies in Israel have reported receiving nearly 10,000 claims within the first two days of the assault. The national Property Tax and Compensation Fund noted that initial civilian damages already exceed 1 billion shekels, with thousands of structures impacted across multiple cities.

Economic Outlook Weakens

Beyond physical damage, the conflict is taking a toll on Israel’s broader economy. The Bank of Israel has cut the country’s 2025 GDP growth forecast from 4.3% to 3.6%, citing uncertainty from the twin fronts of war with Hamas in Gaza and now Iran. Analysts warn that if the current pace of operations continues, the conflict could cost the state upwards of $12 billion per month.

The Israeli government, already facing fiscal strain from the Gaza campaign, is expected to submit an emergency war budget to the Knesset in the coming weeks.

Growing National Concern

The Iranian attacks mark an unprecedented escalation in direct hostilities between the two countries. While previous tensions were mostly limited to proxy engagements, this wave of missile strikes and drone swarms has brought the confrontation to Israeli soil on a new scale.

Government officials have yet to release a detailed breakdown of total damages, but national security advisors are expected to brief the public in the coming days. Meanwhile, emergency services, civil defense teams, and reconstruction authorities remain on high alert as Israel braces for the possibility of further escalation.

By Daily Observer

Trusted news from Nigeria and beyond. Real stories. Real people. Real impact. Visit us: www.dailyobserver.ng

Leave a Reply

Your email address will not be published. Required fields are marked *