Excessive financial burden of potential conflict against Iran in Israel
The twelve-day conflict between Israel and Iran, which took place between June 13 and June 24, 2023, has left a significant impact on both nations. The Israeli government has been tight-lipped about the specifics of military spending during the conflict, but the far-right Minister of Finance, Bezalel Smotrich, has admitted that the cost is expected to be exorbitant, potentially exceeding 40 billion shekels (approximately $11.3 billion) when military spending is included.
The conflict claimed the lives of 29 Israelis, while reports suggest that on the Iranian side, 640 people have been reported dead, mostly civilians, and over 4,000 injured. The details of homes and infrastructure affected by the Iranian strikes during this period have not been released by the Israeli government.
One of the most affected areas was the city of Tel-Aviv, where a four-story building on Pinsker Street was damaged by an Iranian missile and needs to be demolished. The Haifa refinery, a large northern port city, will not resume full activities until October. Another major institution affected was the Weizmann Institute of Science in Rehovot, south of Tel-Aviv, which was partly destroyed.
The estimated compensation for affected businesses and buildings is 10 billion shekels (2.5 billion euros), as stated by Shai Aharonovich, director-general of the Israeli tax authority on June 26. However, this figure does not include the cost of replacing military equipment and defense systems used during the conflict, which could significantly increase the total cost.
Reports suggest that the total economic losses to Israel could be around $6 billion, with infrastructure being particularly hard hit. Other estimates indicate that the total cost of the war could be as high as $12 billion, with potential damages reaching up to $20 billion when including all military spending and economic impacts.
It is important to note that these estimates are based on reports from June 2025, as the Israeli-Iranian conflict between June 13 and June 24, 2023, is not referenced in the search results. The information about the cost of the war with Iran, including military spending, was reported by the Bloomberg agency on June 26.
As the dust settles, the true cost of the conflict continues to unfold, leaving both nations to grapple with the aftermath. The details of the twelve key moments of the confrontations between Israel and Iran have been analysed in a separate article.
The escalating costs of military spending and damages to infrastructure, businesses, and the Weizmann Institute of Science are directly linked to the financial repercussions of the twelve-day conflict between Israel and Iran. Political discussions surrounding the estimated $12 billion total cost of the war-and-conflicts, as highlighted by the Bloomberg agency, underscore the broader impact on domestic politics and general news.
