Tel aviv: The Israeli Finance Ministry has projected that the financial toll of 40 days of warfare involving Iran and Lebanon amounts to approximately $17.5 billion, as reported by Israeli Channel 12 on Thursday. This substantial cost arises from both direct military expenditures and civilian impacts.
According to Anadolu Agency, direct military expenses related to the ongoing conflict with Iran and Hezbollah are projected at around 40 billion shekels ($12.9 billion). Civilian costs are anticipated to range between 13-14 billion shekels ($4.2-4.5 billion), culminating in a total of roughly 54 billion shekels ($17.5 billion). These preliminary figures are subject to future updates and currently exclude potential reconstruction costs or economic losses due to the war-induced partial shutdown.
The Finance Ministry has designated around 7 billion shekels ($2.3 billion) as a reserve for additional defense-related expenditures. This allocation would elevate the total military costs to approximately 40 billion shekels, as highlighted by Channel 12. Military expenses encompass weapons, flight hours, reserve soldiers' service days, and damages.
Compensation costs under property tax have been estimated at around 12-13 billion shekels ($3.8-4.2 billion), intended to address the anticipated payouts to businesses impacted by diminished activity during the conflict. Furthermore, an additional expenditure of 1 billion shekels (about $324 million) is expected for unpaid leave schemes for workers unable to attend work, as well as compensation for local authorities.
As of Thursday morning, 28,237 claims for direct property damage have been filed with the compensation fund. These claims include 18,408 for buildings, 2,594 for equipment, and 6,617 for vehicles. The highest number of claims has been recorded in cities such as Tel Aviv (around 5,100), Beersheba (3,600), Arad (2,350), Petah Tikva (2,000), Dimona (1,500), and Beit Shemesh (1,400).
In a diplomatic development, Iran and the US announced a two-week truce on Tuesday, mediated by Pakistan, with the goal of facilitating a final agreement to conclude the conflict initiated by Washington and Israel against Tehran on February 28. The war has resulted in thousands of casualties and injuries.
Lebanon has declared a period of national mourning following Israeli attacks that resulted in at least 254 deaths on Wednesday, according to Lebanese authorities. This escalation has sparked concerns about the potential derailment of the delicate truce between Washington and Tehran.