Economists say Iran war is far more expensive than Gaza or Hezbollah conflicts, driven by advanced munitions, The Wall Street Journal reports
Israel's war with Iran is costing the country an estimated $200 million per day, according to early assessments reported by The Wall Street Journal—a staggering figure that is quickly becoming a major constraint on the duration of the conflict.
The most expensive burden is the interception of Iranian missiles, which alone can run into tens or even hundreds of millions daily, the WSJ reported on Thursday.
Systems like David's Sling and Arrow 3—each interception costing between $700,000 and $4 million—have been activated repeatedly in response to over 400 missiles launched by Iran in recent days.
Offensive operations are also increasing costs. Deploying Israeli F-35s over 1,000 miles to hit targets in Iran costs approximately $10,000 per hour per jet, in addition to the price of precision bombs like JDAMs and MK84s.
Altogether, the Aaron Institute for Economic Policy estimates that a month-long war could cost Israel $12 billion.
“This war is far more expensive than Gaza or Hezbollah,” said economist Zvi Eckstein. “The ammunition—defensive and offensive—is the big expense.”
The economic pressure is leading to calls for a shorter war, though Prime Minister Benjamin Netanyahu has not indicated any intention to halt operations before achieving strategic objectives such as crippling Iran's nuclear and missile programs.
While Israeli markets remain stable—some even rising—damage on the ground is mounting.
Engineers estimate that reconstruction costs from missile strikes will exceed $400 million, as hundreds of buildings have been damaged, and more than 5,000 civilians have been evacuated.
Israel's largest oil refinery was temporarily shut down after being hit, and work in several critical infrastructure sectors has been suspended.
Former Bank of Israel Governor Karnit Flug told the WSJ that the duration of the conflict is key to economic sustainability: “If it is a week, it is one thing. If it is two weeks or a month, it is a very different story.”
