JERUSALEM, April 12 (Xinhua) -- The Israeli Finance Ministry said Sunday that initial estimates put the direct cost of the war with Iran, which began on Feb. 28, at about 35 billion shekels (around 11.5 billion U.S. dollars).
In a statement, the ministry said the conflict has carried high economic costs, including lost output and increased government spending, with some effects expected to become clearer over time. It warned the total could rise if fighting resumes or other major security incidents occur.
According to the ministry, about 22 billion shekels have been spent on the security system, including the military, the Defense Ministry, the National Security Ministry, which oversees the Israel Police, and other security agencies.
The ministry said that amount has already been incorporated into the Defense Ministry's budget as part of the 2026 state budget, which was approved by parliament in late March, about a month after the war began.
It said most of the defense spending went to equipment purchases, as well as the expanded mobilization of reserve forces beyond what had been planned for the war period.
The second-largest component, totaling 12 billion shekels, covers compensation for missile damage, as well as payments to workers and businesses.
The remaining 1 billion shekels covers civilian expenses, including medical care and payments for the wounded, funding for local authorities for emergency equipment and response, and welfare-related costs. ■
