The Brig. Gen. (res.) Re’em Aminach a former defense official, has estimated that the ongoing war with Iran costs Israel around $725 million per day. He believes that the amount is roughly evenly split between the Israeli military’s offensive and defensive operations. 

“These are direct costs only,” Aminach assessed who previously led the Defense Ministry’s Budget Department and the IDF’s economic division. He further believes that the true cost for the Israeli economy will be significantly higher. 

“The indirect costs – including impact on gross domestic product – cannot be measured at this stage.”

Aminach’s assessment is based on the first two days of war with Iran, which cost Israel around 5.5 billion shekels ($1.45 billion). However, the amount excludes the costs for repairing the growing material damages in Israeli cities caused by the ongoing Iranian ballistic missile attacks. Israeli officials have estimated that some 90% of the Iranian missiles are intercepted by the Jewish state’s advanced aerial defense systems. However the 5-10 % Iranian missiles that passed through Israel’s defenses, have caused significant material damage in residential areas and killed a growing number of Israeli civilians. 

In June 2024, Bank of Israel Governor Amir Yaron estimated that the Gaza War would cost the Israeli economy some $67 billion in military and civilian costs during the period 2023 to 2025. Yaron suggested at the time that the Israeli government should balance defense needs with budgetary discipline.