Israel Cites US$17.5bn Estimated War Cost Against Iran, Lebanon

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April 10, 2026 | 05:55 pm

TEMPO.CO, Jakarta - The Ministry of Finance of Israel estimates the cost of war for 40 days against Iran and Lebanon at around US$17.5 billion, as reported by Israel's Channel 12 on Thursday, as cited by Anadolu.

The direct military expenditure for the ongoing conflict with Iran and Hezbollah is estimated at around 40 billion shekels (US$12.9 billion), according to the report.

The civilian costs are projected to be around 13-14 billion shekels (US$4.2-4.5 billion), making the total around 54 billion shekels (US$17.5 billion), the channel added.

These figures are preliminary and are expected to be updated. This does not include the cost of reconstruction in the future or the loss of gross domestic product caused by the partial economic shutdown during the war.

The Ministry of Finance of Israel has also allocated around 7 billion shekels (US$2.3 billion) as a reserve for defense-related expenditures. This reserve will increase the total military cost to about 40 billion shekels, according to Channel 12.

Military expenditures include weapons, flight hours, reserve soldier days, and damages.

The Ministry also estimates the compensation costs under property tax to be around 12-13 billion shekels (US$3.8-4.2 billion), which includes expected payments to businesses affected by the decreased activities during the war.

An additional 1 billion shekels (around US$324 million) is estimated to be spent for unpaid leave schemes for workers unable to attend work and to compensate local governments.

As of Thursday morning, 28,237 claims for direct property damage had been filed with the compensation fund, including 18,408 for buildings, 2,594 for equipment, and 6,617 for vehicles.

The largest number of claims were reported in Tel Aviv (around 5,100), Beersheba (3,600), Arad (2,350), Petah Tikva (2,000), Dimona (1,500), and Beit Shemesh (1,400).

Iran and the U.S. announced a two-week ceasefire late Tuesday Washington time, mediated by Pakistan.

The ceasefire aims to pave the way for a final agreement to end the war launched by Washington and Israel against Tehran on February 28. The conflict has resulted in thousands of deaths and injuries in various countries in the Middle East.

Lebanon declared a national mourning period after Israel's brutal attack killed at least 303 people on Wednesday, according to Lebanese authorities. This raised concerns that the escalation could jeopardize the fragile truce between Washington and Tehran.

Read: Mojtaba Khamenei: Iran Not Seeking War Amid Rising Tensions

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