Damage Inflicted by Iran on Israel Revealed

As tensions in the Middle East continue to escalate, the recent armed confrontation between Israel and Iran has also led to severe economic consequences. According to Israel’s Ministry of Finance and Tax Authority, material damage alone is estimated at 10 billion shekels (approximately 3 billion USD), Bloomberg reported.

The reported figures primarily cover the costs of rebuilding buildings destroyed by rocket attacks, compensating local businesses, and restoring infrastructure. However, the expenses of replacing used military equipment and air defense systems have not yet been included in the estimate.

The head of Israel’s Tax Authority, Shay Aaronovich, described this as the largest economic loss in the country’s history. The Finance Minister stated that total war-related expenses could reach up to 12 billion USD. In contrast, Bank of Israel Governor Amir Yaron offered a more conservative estimate of around 6 billion USD.

The recent conflict has also seriously impacted Israel's economic growth outlook. Previously, GDP growth for 2025 was forecasted at 3.5%, but this figure may now be revised downward. Trade, services, investment activity, and tourism have all significantly declined due to the ongoing war.

Analysts point out that this war has proven to be far more costly than previous ones. The main reason is that Iranian rocket attacks targeted densely populated areas in central Israel, particularly the Tel Aviv metropolitan area, home to over half of the country’s population and a major hub for economic activity.

Additionally, the rockets used by Iran were equipped with high-powered warheads, each containing at least 500 kilograms of fragmenting explosives. According to Israeli intelligence, Iran possessed between 2,000 and 2,500 such rockets before the conflict began, with about half reportedly still remaining. Read 'Zamin' on Telegram!