Beyond the Headlines: Unpacking the Financial Toll of the Iran-Israel Conflict

The 12-day war has ended, with both Israel and the United States claiming success in achieving their respective goals. Following the conflict, a comprehensive review of the economic impact is underway, with all involved nations grappling with substantial financial losses. Assessing the losses, it is clear that Iran has suffered the most, with significant damage to military assets and the economy. The conflict further strained Iran’s economy, which was already impacted by Western sanctions, leading to a decline in oil exports. Israel estimates damages at $3 billion, with the possibility of rising costs as the assessment continues. The United States’ Operation Midnight Hammer, targeting Iran’s nuclear facilities, cost between $1 and $2 billion. The conflict has forced the Israeli government to consider financial measures, including spending cuts, tax increases, and increased borrowing to manage the economic fallout.