Israel bleeds $1 billion a day in war with Iran as former defense chief issues dire financial warning

Time of India

a day ago

Israel's escalating conflict with Iran is draining the nation's resources, with daily military costs reaching approximately $725 million. The initial days of combat saw expenses soar to $1.45 billion, covering both offensive operations and defensive measures. This financial strain has prompted a downward revision of Israel's economic growth forecast for 2025.
In this photo released by the Iranian Red Crescent Society rescuers work at the scene of an explosion after an Israeli strike in Tehran, Iran, Friday, June 13, 2025. (Iranian Red Crescent Society via AP)
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Skyrocketing Costs of Israel-Iran War Revealed
Israel's Growth Forecasts Slashed as War Drags On
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As Israel's conflict with Iran heats up, the war is costing the nation almost $725 million a day for military costs alone, revealed Brig. Gen. (res.) Re'em Aminach, a former senior defense officer and financial consultant to the IDF chief of staff, reported Ynet News.Aminach disclosed that Israel spent about $1.45 billion dollars in merely the initial two days of combat, this includes offensive expenses, such as Israel's initial attack on Iran, that included flight hours and munitions which cost $593 million and the rest of the amount was spent on defensive expenses such as missiles interception systems and mobilization of reserve troops, as per the report. While, his estimated calculation excludes damage to civilian property and broader economic fallout, according to Ynet News.He highlighted that 'These are direct costs only,' adding, 'The indirect costs — including impact on gross domestic product — cannot be measured at this stage,' quoted Ynet News.Israel's finance ministry had already set a deficit ceiling of 4.9% of GDP for the current fiscal year, which is about $27.6 billion, reported Ynet News. Even though the country's budget includes an emergency reserve, most of it was already used during the war in Gaza, and does not account for the ongoing conflict with Iran, as per the report. The ongoing war has led to a downward revision in the Israel's economic outlook as the ministry reduced its 2025 growth forecast to 3.6% from 4.3%, rpeorted Ynet News.Yes, that's the current estimate, and it only covers direct military expenses like missiles, jets, fuel, and deploying troops.The government has already lowered its growth forecast for 2025, as per Ynet News report.