Iran War Cost Israel About NIS 35 Billion in Budgetary Expenses, Finance Ministry Says | Israel Politics Post
Iran War Cost Israel About NIS 35 Billion in Budgetary Expenses, Finance Ministry Says
Over a 40-day campaign that saw more than 1,000 Israeli strike waves and roughly 650 Iranian ballistic missiles fired back, defense and compensation costs together reshaped a large slice of the 2026 state budget.
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By Israel Politics Post Staff·Published
The scene where a missile fired from Iran toward Israel caused damage to residential buildings in Dimona · Source: Chaim Goldberg/Flash90, via The Times of Israel
Israel's Finance Ministry estimated the recent conflict with Iran cost the state roughly NIS 35 billion ($11.5 billion) in budgetary expenses, The Times of Israel reported, with the 40-day campaign leaving a mark on the economy well beyond its immediate defense costs.
Defense and military spending made up the largest share, an estimated NIS 22 billion covering equipment, reserve mobilization and operational costs across the IDF, the Defense Ministry and the National Security Ministry, all folded into the 2026 state budget. The ministry separately earmarked NIS 12 billion for compensation programs, including direct reimbursement for missile damage, relief for businesses that lost revenue, and assistance for furloughed workers, plus another NIS 1 billion for civilian-side costs such as hospital adjustments, emergency response and Social Affairs Ministry expenses tied to the war.
"The functioning of the Finance Ministry and responsible management of the country's economy were a critical factor in the great operational success," Finance Minister Bezalel Smotrich said of the spending.
The conflict, which began February 28, saw Israeli aircraft fly more than 1,000 strike waves and drop over 18,000 bombs targeting Iranian air defenses, missile launchers, weapons production sites and nuclear infrastructure. Iran responded with roughly 650 ballistic missiles, at least 16 of which struck populated areas inside Israel with conventional warheads.
