Khaberni - As the war on Iran enters its second month, the financial hemorrhaging in Israel is accelerating unprecedentedly, amid the escalating cost of successive wars that started in Gaza and didn't stop there.
Estimates by the Bank of Israel indicate that the indirect economic losses of the war on Gaza and Lebanon amounted to approximately $57 billion over the years 2024 and 2025, whereas the direct cost of wars since October 2023 has exceeded the $112 billion mark, according to official estimates that include operations in Gaza, Lebanon, and the confrontation against Iran up to last year.
In the context of the current war, the Israeli newspaper "Calcalist" estimates the cost at about $15 billion in just 38 days, while the Defense Ministry has requested an additional $12 billion to cover military expenses.
Increasing Burden
This increase in cost directly reflects on the Israeli domestic front, meaning each household bears about $33,000 from the burdens of successive wars since 2024, an indicator of the war's effects transitioning from the military front to the depths of daily life.
The impact is not limited to public finances but extends to various economic sectors, with the advanced technology sector at the forefront, which is one of the pillars of the Israeli economy.
According to a survey by the Israeli Innovation Authority, 87% of companies in this sector suffer from delays in developing and launching products, while 71% face difficulties in raising capital, and 10% of companies have been forced to grant unpaid leave to their employees.
Increasing Pressure
The construction and real estate sector is also facing exacerbated challenges, as home sales transactions decreased by 35% compared to the previous year, amid the effects of the war on Gaza, which resulted in an estimated shortage of about 150,000 workers after the entry of Palestinian labor was banned.
Moreover, around 26,000 compensation claims have been filed for damages to homes and properties, amounting to $450 million.
In this context, a report by "JP Morgan" indicates an increase in the percentage of missiles causing damage inside Israel from 3% during the first two weeks of the war to 27% thereafter.
Between depleting resources in the Gaza war and opening a new front against Iran, the Israeli economy faces a harsh test, as challenges are no longer limited to resilience but extend to the cost of continuity.
In light of this reality, the pressure on pivotal sectors supporting the economy increases, amidst signs of a gradual erosion in the market's ability to absorb the successive shocks.
Ultimately, the question is no longer whether the Israeli economy can withstand, but how much can it bear the cost of an endless war?
