Israel launched a massive attack against Iranian nuclear sites earlier this month — killing top generals and sparking off nearly two weeks of war. Nearly a thousand people were killed amidst the clashes while countless others were injured. Extensive destruction has been reported by both countries with Israel— already stressed by the cost of multiple conflicts — suffering at least $3 billion in damage.
“This is the greatest challenge we’ve faced — there has never been this amount of damage in Israel’s history,” Bloomberg quoted the director general of Israel’s Tax Authority as saying.
The figure includes funds that will be needed to repair missile-hit buildings as well as compensation that will be paid to local businesses. Israeli authorities had previously said that more than 9,000 people had been displaced from their homes amid the strikes — with many residences damaged or destroyed by the Iranian attacks. The $3 billion estimate does not include the cost of replacing weapons and and defense systems used in the campaign.
Israeli Finance Minister Bezalel Smotrich told a press conference that the total total cost of war could be as high as $12 billion. The FInance Ministry estimate includes compensation of approximately 5 billion shekels that will be paid to businesses. The ’12 day war’ had also led to a near-shutdown of the Israeli economy with schools and businesses closed — except those designated as essential.
Meanwhile Bank of Israel Governor Amir Yaron put the figure around the $6 billion mark during an interaction with Bloomberg TV on Wednesday. The official opined that the brief campaign against Iran likely cost Israel 1% of its GDP or about 20 billion shekels ($5.9 billion).
Israel has been involved in clashes with multiple countries over the past two years — including the ongoing Gaza war. Tel Aviv has also launched repeated strikes into Lebanon in a bid to counter the Hezbollah.