Post-Oct. 7 wars cost Israel close to half a trillion shekels

Current war with Iran estimated to cost 65 billion shekels; price tag for post-Oct. 7 wars nears half a trillion shekels.

By World Israel News Staff

The seven-front war Israel has been fighting since the Hamas invasion of October 7, 2023, has cost the Jewish state nearly half a trillion shekels, with the latest conflict with Iran projected to cost some 65 billion shekels ($21.4 billion).

According to estimates published by Yedioth Ahronoth, which drew on data from the government and IDF, prior to the outbreak of the recent Iranian war and subsequent war with Hezbollah in Lebanon, the total cost of the war – including military expenditures, compensation to victims of rocket and missile attacks, and damage to the Israeli economy – topped 352 billion shekels ($116 billion).

Including the conflict with Iran, beginning on February 28 and pausing with the April 8 ceasefire, the total war burden rises to 417 billion shekels ($137.4 billion), while the war with Hezbollah grinds on.

The estimate for Operation Roaring Lion includes more than 50 billion shekels in military spending and roughly 10 billion shekels in direct civilian costs, not including broader damage to the economy from weaker growth, higher inflation, delayed investment and disruptions to business activity.

The figures also do not yet fully capture the direct and indirect damage from missile strikes across more than 1,000 impact sites during the 40 days of fighting.

The financial strain from the mounting military costs is expected to trigger a fresh battle inside the government over how to pay for the war.

Defense officials are reportedly seeking at least 15 billion shekels in additional funding, including 7 billion shekels already needed by the Defense Ministry’s rehabilitation division because of the growing number of wounded and payments to bereaved families since October 7, 2023.

Covering that gap would likely require either raising the budget deficit from 4.9% to 5.6%, cutting procurement and development budgets across government ministries by roughly 2% to 3%, or a combination of the two.

Some national projects could be pushed back, including the Tel Aviv metro, new government offices in Jerusalem, and investments in roads and rail lines. Any such changes would require cabinet approval and passage through the Knesset.