Israeli regime faces 300 billion shekel cost from Gaza war operations
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The cost of "Israel's" Gaza war has reached 300 billion shekels, driven by reserve forces, weapons purchases, and long-term economic fallout, experts warn.
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Destruction of residential buildings by an Iranian missile strike in Bat Yam, central occupied Palestine, on Sunday, June 15, 2025 (AP)
Israeli media revealed that the ongoing war on Gaza has cost the Israeli occupation approximately 300 billion shekels (around $80 billion), with analysts suggesting the real figure may have already surpassed that estimate.
Shaul Amsterdamski, economic affairs commentator for the Israeli Kan broadcaster, reported that internal discussions within the occupation’s Ministry of Finance are now focused on the spiraling cost of the war, particularly the military operations component.
Amsterdamski noted that the more the war expands, especially through the occupation of additional territory, the more the costs rise dramatically. The most significant burden, he explained, stems from the prolonged deployment of reserve soldiers, as well as expenses related to ammunition, fuel, and operational logistics.
He added that massive weapons procurement deals, totaling tens of billions, have been made to bolster the Israeli military’s capabilities, warning that these expenditures will have a decade-long financial impact on Tel Aviv's budget.
The economic analyst also cautioned against the occupation’s shifting discourse, where the very concept of "occupation" has been largely ignored. He emphasized that controlling Gaza would entail full administrative responsibility over civilian life, including education, food, sewage, and basic services, in addition to maintaining a large, costly ground force presence.
Massive fallout from war on Iran
Similarly, Israeli media in July sounded the alarm over $14 billion in losses, a surging defense budget, and tens of thousands of compensation claims, as economic strain deepens in the aftermath of the 12-day war on Iran.
According to a report by the Israeli daily Maariv, the war has inflicted severe financial damage on the Israeli economy, with the total impact estimated at over 52 billion shekels (approximately $14 billion USD). The report noted that the war has delivered a major blow to "Israel’s" total economic activity and threatens broader budgetary stability.
“It’s no longer just about rebuilding damaged buildings, it’s about rebuilding the economy,” Maariv reported, highlighting that daily life during the war was “nearly impossible” due to constant sirens, rocket fire, destroyed infrastructure, and casualties.
Even under optimistic recovery scenarios, the paper noted that half of the damage is unlikely to be recuperated, leaving a net loss of 26 billion shekels, or 1.3% of GDP, a substantial economic blow.
Defense budget grows into a ‘bottomless pit’
The financial strain is further compounded by the ballooning costs of the Israeli occupation's defense spending. Maariv reports that the 2025 defense budget, recently approved by the Knesset, stands at 135 billion shekels, or 21.8% of the national budget. This includes 75.7 billion shekels in debt repayments to the National Insurance Institute.
The newspaper described both the security establishment and debt servicing as “a bottomless economic pit,” given the continued war-related expenditures.
