Israel has estimated the cost of damage from its recent 12-day war with Iran to exceed $3 billion, as officials and economic experts warn of mounting financial strain across the country.

Israel’s Tax Authority has reported that the property destruction from Iran’s retaliation is nearly double that of the October 7 resistance-led operations. The damage—estimated at around NIS 5 billion ($1.47 billion)—includes extensive hits on military, economic, and industrial sites, as well as civilian infrastructure that the Zionist regime has struggled to protect.

Finance Minister Bezalel Smotrich has admitted that the total cost of the war could soar to $12 billion, highlighting the scale of Iran’s effective deterrent response. The Israeli economy, already reeling from domestic unrest and prolonged conflict in Gaza, has now seen further strain, with schools closed and key industries disrupted.

Bank of Israel Governor Amir Yaron estimated the immediate cost of the conflict at roughly $6 billion—1% of Israel’s GDP. Independent economists project total losses, including long-term economic disruption, could reach up to $20 billion.

More than 36,000 Israeli citizens have filed for compensation due to property damage from the Iranian strikes. The regime is now considering austerity measures, including public spending cuts, tax hikes, and borrowing, in an attempt to offset the ballooning budget deficit.

The scale of financial damage underscores the success of Iran’s calculated military response, which Tehran has maintained was aimed at deterring aggression and defending its sovereignty after Israeli attacks on Iranian soil. It also reveals the growing costs of Israel’s continued wars of occupation and its reliance on militarized policies that have now backfired economically.

Observers note that while Tel Aviv scrambles to contain its financial fallout, Iran has demonstrated both military precision and strategic resilience in the face of escalating provocations. (ILKHA)