The mayor of the Israeli settlement of Bat Yam, located south of Tel Aviv, revealed Friday that the area suffered the most devastating blow in its history following the latest Iranian missile retaliatory attack, which left an entire neighborhood in ruins and displaced thousands.

Speaking to Israeli broadcaster Kan 11, Mayor Tzvika Brot described the strike as a “catastrophic event,” stating that “in a single day, Bat Yam endured the harshest blow it has ever seen.” According to Brot, a residential area spanning 120 dunams (120,000 square meters) was entirely wiped out by the Iranian bombardment.

Entire neighborhood flattened, 2,000 settlers displaced

The Iranian retaliation, which targeted multiple sites across "Israel," inflicted particularly severe damage on Bat Yam, where dozens of missiles struck residential zones. Mayor Brot reported that 160 dunams (160,000 square meters) were damaged, and that 20 buildings would be demolished entirely next week due to structural failure, effectively erasing the entire neighborhood.

“Look around,” Brot said, “all the surrounding buildings are damaged—even those that weren’t directly hit.”

As a result, approximately 2,000 settlers have been rendered houseless, with emergency evacuations and temporary shelter plans underway.

According to Brot, the scale of casualties and property loss has made Bat Yam the “most devastated site in Israel” even compared to other areas hit in the recent wave of Iranian retaliation. The attack reportedly killed six Israelis and wounded 200.

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$3bln in damages

"Israel" has estimated the damage from its 12-day war with Iran at 10 billion shekels (around $3 billion), covering repairs to missile-struck buildings and compensation for affected businesses.

The figures, released this week by the finance ministry and tax authority, highlight the unprecedented scale of destruction inflicted during nearly two weeks of rocket attacks.“This is the greatest challenge we’ve faced, there has never been this amount of damage in Israel’s history,” said Shay Aharonovich, director general of "Israel’s" Tax Authority, which is overseeing the compensation process.

The estimate does not include the cost of replenishing weapons and defense systems used during the conflict, an amount expected to significantly raise the total once assessments are complete.

Finance Minister Bezalel Smotrich suggested the overall cost of the war could reach $12 billion, while Bank of Israel Governor Amir Yaron gave a lower estimate of around $6 billion in an interview with Bloomberg TV. Either way, the economic toll comes at a time when "Israel" is already grappling with nearly two years of ongoing wars.

Payouts could reach $1.4 billion

Over the 12-day war, "Israel’s" economy came to a near standstill, with schools and businesses closed except for essential services. The government plans to compensate affected businesses, with the Finance Ministry estimating payouts could reach 5 billion shekels (approx. $1.4 billion).

That figure alone is nearly double what the government has paid for property damage since October 2023, including compensation to entire communities destroyed in Hamas’s attacks, as well as damages from Hezbollah rocket fire in northern occupied territories.

"Israel’s" war on Iran has proven far more costly than with the Lebanese and Palestinian resistance movements, primarily for two reasons:

First, while past attacks targeted smaller, rural communities, Iran launched ballistic missiles directly at major population centers, including central "Israel" and the wider Tel Aviv metropolitan area, home to over half the occupation's population and dense urban infrastructure.

Second, Iran’s weaponry is significantly more powerful. Its missiles can carry up to 500 kilograms of explosives, with fragmentation warheads that cause widespread destruction on impact.