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Time of India
5 hours ago
- Business
- Time of India
'$12 billion a month': The cost of Israel's daily strikes and defence against Iran - war at a premium
Israel is spending hundreds of millions of dollars each day in its escalating conflict with Iran, with the cost of interceptors, munitions, air operations, and infrastructure damage mounting rapidly, according to The Wall Street Journal. The daily military expenditure could run as high as $200 million just for missile interceptions, with broader operational costs and infrastructure damage driving that figure significantly higher. Experts estimate that rebuilding damage caused by Iranian missile strikes could alone cost Israel at least $400 million. Former Bank of Israel governor Karnit Flug warned that while the economy may absorb the costs of a short conflict, a prolonged war could be far more damaging. 'If it is a week, it is one thing,' she said. 'If it is two weeks or a month, it is a very different story.' The financial toll is being driven in large part by the heavy use of Israel's air defence systems. The David's Sling system, used to intercept short- and long-range threats, costs around $700,000 per activation when firing its minimum of two interceptors. The Arrow 3 system, designed to stop long-range ballistic missiles, costs around $4 million per interception, while Arrow 2 costs approximately $3 million, according to military analyst Yehoshua Kalisky. The conflict has seen more than 400 Iranian missiles fired at Israel in recent days, most of which required interception. The cost of deploying fighter jets—particularly F-35s—adds further pressure. Each hour of flight costs around $10,000 per aircraft. The cost of fuel, munitions like JDAMs and MK84s, and logistics for long-range missions all contribute to Israel's spiralling war bill. Zvi Eckstein, head of the Aaron Institute for Economic Policy, noted that 'per day, it is much more expensive than the war in Gaza or with Hezbollah,' citing the overwhelming burden of ammunition and interceptor usage. His institute estimates that a one-month war with Iran could cost Israel around $12 billion. Despite the sharp military spending, Israel's economy has not entered recession. However, disruptions are widespread. Civilian life has slowed, with many businesses—including restaurants—closed, and only essential workers reporting to duty. The country's main international airport was shut for several days before partially reopening for return flights. On Monday, S&P Global released a risk assessment of the Israel-Iran conflict but left Israel's credit outlook unchanged. Surprisingly, Israeli stock markets rose on Wednesday, with investors betting on the resilience of the economy and a possible swift end to the hostilities. Economists point to Israel's past ability to weather prolonged conflicts, including the 20-month war in Gaza. However, the destruction inflicted by Iranian missile attacks is severe. Structural engineer Eyal Shalev said the damage caused by large ballistic missiles is worse than anything seen in recent conflicts. Hundreds of buildings have been destroyed or heavily damaged, with repair costs expected to run into the hundreds of millions. Meanwhile, Ynet News also reported that Brigadier General (res.) Re'em Aminach, a former senior defence official and IDF financial consultant, estimated that Israel spent about $1.45 billion during the initial two days of combat. Of this, around $593 million went toward offensive operations, such as airstrikes and flight hours, and the rest to defensive measures like missile interception and reservist mobilisation. 'These are direct costs only,' Aminach said. 'The indirect costs — including impact on GDP — cannot be measured at this stage.' The finance ministry has already lowered its GDP growth forecast for 2025 from 4.3% to 3.6% and warned that the existing emergency reserve, mostly depleted by the war in Gaza, does not account for a concurrent conflict with Iran. Israel's deficit ceiling for the year is 4.9% of GDP, or roughly $27.6 billion, which could now be under pressure as the war drags on.
Al Manar
6 hours ago
- Business
- Al Manar
Israeli Economy Hit Hard by Iranian Missiles: Losses Estimated in Billions of Dollars
The confrontation with Iran has been imposing significant economic burdens on the Israeli regime, surging into the hundreds of millions of dollars per day, as reported by The Wall Street Journal, threatening Tel Aviv's ability to sustain a prolonged war. Zvi Eckstein, an Israeli economist, and head of the Aaron Institute for Economic Policy at Reichman University, confirmed that 'this war is far more expensive than Gaza or Hezbollah,' referring to the latest war on Lebanon between September and November 2024. He said: 'The ammunition- defensive and offensive- is the big expense.' The institute estimated that a month-long war could cost Israel as much as $12 billion. According to a June 15 report by the Israeli news outlet Ynet News, quoting a former financial adviser to the Israeli military's chief of staff, stated that the cost has exceeded 5.5 billion shekels (roughly $1.45 billion) for the first two days of confrontation with Iran alone. The economic losses mainly constitute of the Israeli attacks on Iran and the interception of Iranian missiles – attack and defense. Consequently, the financial toll from Iranian missile strikes increases accordingly. $14 billion in damage to Israel after morning attack Today's Iranian strike has already caused initial losses of $14 billion on the Tel Aviv Stock Exchange. Israel's main stock exchange index, with a total turnover of $475 billion, fell more than 3% – its biggest drop since the… — Sprinter Observer (@SprinterObserve) June 19, 2025 High-Tech Attack and Defense Systems According to Israeli economic advisers, Israel has been spending more than 2.75 billion shekels ($725 million) per day on direct military operations against Iran. Just jet fuel and armaments require a cost of almost $300 million each day. The Israeli Air Force has been actively launching F-35 fighter jets across distances exceeding 1,000 miles, costing roughly $10,000 per hour of flight. In terms of air defenses, David's Sling is one of Israeli key defense systems that intercepts short-to-medium range missiles and drones at a cost of approximately $700,000 per intercept, typically using two missiles per launch. Meanwhile, 'Arrow 3' system, operating beyond the atmosphere to counter long-range ballistic missiles, costs about 4$ million per interception. Its predecessor, 'Arrow 2,' designed for in-atmosphere interception, costs roughly $3 million per missile. Mounting Damage Drains the Israeli Economy Engineers has been estimating that reconstruction costs due to missile strikes will exceed $400 million as a result of the damage of hundreds of buildings, and the evacuation of more than 5,000 civilians. After being hit, the largest Israeli oil refinery in Haifa has been temporarily shut down, and work in several significant infrastructure sectors has been suspended. According to the Israeli public broadcaster 'Kan,' the Israeli regime will approve a payment of 500 shekels (approximately $145) for each settler whose home was destructed in the Iranian missile strikes, neglecting any compensation for owners of commercial properties. An Israeli economic journalist, Liel Keiser, also highlighted the destruction of around 1,500 homes and apartments over just 4 days of the Iranian missile strikes. She warned that the fund designated for property tax holds roughly 9.5 billion shekels and has been gradually depleted, imposing an emerging cause for concern.
Mint
6 hours ago
- Politics
- Mint
US races to defend Israel as it burns through missile interceptors
The U.S. is racing to reinforce Israel's defenses, sending more warships capable of shooting down ballistic missiles to the region as Iranian attacks drain Israel's stocks of interceptors. An additional U.S. Navy destroyer arrived in the eastern Mediterranean on Friday, joining three others in the area and two in the Red Sea. The ships are operating close enough to Israel to be able to intercept missiles fired by Iran, a defense official said. Most of the U.S.'s Arleigh Burke-class guided-missile destroyers are armed with a range of interceptors, known as SM-2, SM-3 and SM-6, that can shoot down ballistic missiles and other aerial threats. SM-3s, first used in combat last year to counter an Iranian attack, are designed to intercept missiles above the atmosphere in the middle of their flight paths. The U.S. has also replenished stocks of ground-based interceptors for the Thaad antimissile system it set up in Israel last year. Formally known as Terminal High Altitude Area Defense, the system is operated by the U.S. Army and designed to intercept missiles inside or outside the atmosphere during their final phase of flight, known as the terminal phase. The surge of seaborne and ground-based missile defenses underscores the concerns about Israel's dwindling supplies of the armaments. Israel risks exhausting its supply of high-end Arrow 3 interceptors in the coming weeks if its conflict with Iran isn't resolved and Tehran continues to launch volleys of missiles, a U.S. official said. Israel uses several different systems to provide a multilayered defense of the country. The well-known Iron Dome works on shorter-range rockets and drones. David's Sling intercepts missiles, planes and drones at a greater distance. The Arrow 3 is the crown jewel, designed to intercept missiles above the Earth's atmosphere. It can neutralize threats before they cross into Israeli airspace and give other systems time to act if the first shot misses. 'Without Arrow 3, it's problematic," said Timur Kadyshev, a researcher at the University of Hamburg who has studied the Arrow system. 'You have less time to shoot down an incoming missile because you're shooting them only in the terminal phase." Israel Aerospace Industries, the company that makes Arrow interceptors, didn't respond to requests for comment. Israel's armed forces also declined to comment on interceptor stockpiles, but said they are ready to handle any scenario. Israeli Prime Minister Benjamin Netanyahu, in an interview Thursday with Israel's public broadcaster Kan, declined to answer whether Israel was running out of Arrow 3 interceptors. 'I would always like more and more," Netanyahu said. He estimated that Israel has destroyed around half of Iran's missile launchers since the current conflict began, thereby diminishing the threat posed by Iran's missile arsenal. The Wall Street Journal reported Wednesday that Trump had approved attack plans for Iran, but was holding off on giving the final order to see if Tehran would abandon its nuclear program through diplomacy. The waiting period will keep the onus on Israel to continue the fight even as its ability to defend against missile attacks runs down. 'There's no time to lose, and two weeks is a very long time," said Tom Karako, director of the Missile Defense Project at the Center for Strategic and International Studies. Israel is using its control of the skies over western Iran to take out more missiles before they are launched. Its air superiority could also force Iran to fire from farther away, which means using liquid-fueled missiles that take more time to get ready, making them more vulnerable to attack. Still, Tehran has continued to fire volleys of missiles at Israeli population centers. If Iran keeps up its attacks, Israel in the coming days might be forced to make difficult decisions about husbanding its resources and giving priority to which missiles to intercept, Kadyshev said. The U.S. is facing its own concerns about supplies of interceptors. Supplies diverted to the conflict in the Middle East are coming at the expense of those available in the event of a bigger conflict with China. 'We are concerned for the number remaining for the high-end fight," said a U.S. officer who has operated in the Middle East. 'SM-3s will start running low at this pace of operations, cutting into reserves for the next kinetic engagement." The U.S. might also face tough decisions about how many interceptors to exhaust if the fighting drags on. It rushed missile defenses to its Persian Gulf partners after the Hamas-led Oct. 7, 2023, attacks on Israel kicked off what would become more than a year and a half of war. Those defenses are politically and militarily important. Gulf countries have pressed the U.S. to take a more active role in their defense, and Iran has threatened to hit American bases in the Gulf and elsewhere in the region if the U.S. joins Israel in the attack. Israel's conflict with Iran is costing the country hundreds of millions of dollars a day, according to early estimates, a price tag that could constrain Israel's ability to conduct a lengthy war. The biggest single cost is the interceptors, which can run up tabs of tens of millions to even $200 million a day.
News18
11 hours ago
- Politics
- News18
Iron Dome, Arrow, David's Sling: How Has Iran Penetrated Israel's Famed Air Defence Systems?
Last Updated: Although Israeli figures suggest these penetrations are limited in success rate, they have raised questions about the vulnerabilities of even the most advanced air defence networks Despite possessing one of the world's most sophisticated and multi-layered air defence systems, Israel has experienced breaches by some of Iran's missiles in the recent conflict escalation. Although Israeli figures suggest these penetrations are limited in success rate, they have raised questions about the vulnerabilities of even the most advanced air defence networks when confronted with a determined and tactically diverse opponent. Saturation attacks Iran has primarily challenged Israel's aerial defences through saturation attacks, launching numerous missiles and drones in waves. Israel's defence system consists of several tiers: the Iron Dome for short-range rockets, David's Sling for medium-range missiles and cruise missiles, and the Arrow 2 and Arrow 3 systems for long-range ballistic missiles, intercepting them at higher altitudes or even in space. While each system boasts high interception rates for their intended targets, the sheer number of projectiles can overwhelm even the most robust defense. By firing hundreds of projectiles simultaneously, Iran aims to deplete Israel's interceptor missiles and create gaps in its defensive shield, allowing some projectiles to penetrate. Attack diversity Additionally, Iran has utilised a diverse array of projectiles with varying flight characteristics, complicating interception efforts. These include a large number of slower, low-flying drones that serve to distract or saturate defences, as well as faster, higher-flying ballistic missiles. The combination of different speeds and flight paths creates a multidimensional threat that can confuse and overtax air defence coordination. Advanced tactics Reports have also indicated Iran's use of more technologically advanced missiles and tactics. Iran's Islamic Revolutionary Guard Corps (IRGC) has claimed to employ a novel technique where missiles are guided in a manner that causes Israeli interceptor missiles to target each other, effectively confusing Israel's integrated defence system. While the exact details of this 'spoofing" tactic are not fully disclosed, it suggests an attempt to exploit potential weaknesses in the target acquisition and engagement logic of Israel's interceptors. Some Iranian missiles are believed to employ manoeuvrable re-entry vehicles (MaRV) or release decoys, further complicating interception by making their trajectories unpredictable. Air defence costs The sheer cost and finite supply of interceptors for Israel's defence systems also play a role. While systems like Iron Dome have a relatively lower cost per interceptor, the more advanced Arrow and David's Sling interceptors are significantly more expensive. A prolonged, high-volume assault by Iran forces Israel to expend these valuable munitions rapidly, potentially leading to a strain on their inventory over time. This economic attrition can influence defensive decisions, as Israel may choose not to intercept projectiles assessed to be heading for unpopulated areas, effectively 'leaking" some missiles by design to conserve resources. Leakage rate Finally, while Israel's defence systems are among the world's best, no system is entirely impenetrable. Even with high interception rates (Israel has stated 80-90% for ballistic missiles), a 5-10% 'leakage" rate on a massive volley can still result in numerous impacts, especially when targeting densely populated civilian areas or critical military infrastructure like the Kirya compound in Tel Aviv, which has seen 'significant damage." This inherent limitation, coupled with Iran's evolving missile capabilities and tactical sophistication, has allowed Tehran to achieve some level of penetration, inflicting damage and underscoring the formidable challenge posed by large-scale, multi-faceted missile attacks. News explainers Iron Dome, Arrow, David's Sling: How Has Iran Penetrated Israel's Famed Air Defence Systems?
NDTV
14 hours ago
- Politics
- NDTV
Is Israel's Iron Dome Failing Against Iran? What Ex General Told NDTV
New Delhi: Over the last eight days, Israel's much-acclaimed air defence system, the Iron Dome, has been tested like never before against multiple waves of Israeli missiles. As the conflict stretches into its eighth day, questions mount over its performance and whether it can withstand a long conflict. On Thursday, Iran confirmed a new wave of combined missile and drone attacks on military sites in Haifa and Tel Aviv, escalating tensions and prompting fears that Israel's air defences may be cracking under pressure, reported Al Jazeera. On June 19, the strikes, which reportedly hit four locations - including Soroka Hospital in southern Israel - triggered a counterattack. Airstrikes were aimed at what are believed to be Iranian-linked nuclear facilities in Iraq. Israeli Prime Minister Benjamin Netanyahu said he was not ruling out a strike on Ayatollah Khamenei, while Defence Minister Israel Katz directly blamed the Iranian Supreme Leader for the attack on the hospital. As footage surfaces showing some missiles slipping past Israeli air defences, speculation has intensified — is the Iron Dome beginning to falter? Speaking to NDTV, retired Brigadier General Amir Avivi, chairman of the Israel Defense and Security Forum (IDSF), insisted that while the system was under strain, it remained largely intact. He said it wasn't just the Iron Dome at work. 'Ballistic missiles — especially those fired from long range — are intercepted mostly by Arrow 3,' he said, referring to Israel's space-based missile defence system, which he claimed has 'more than 90% success.' Still, he cautioned that no system is flawless. 'It's hard to reach 100%,' he said, adding that when a missile does break through, Israel's layered defence kicks in. He also advised civilians to use bunkers in such instances. On whether the Iron Dome was still dependable or if Israel must prepare for a post-Iron Dome future, Avivi maintained that the system, along with the broader air defence network, was reliable. He said the situation was not just about a single system but about a multi-layered strategy to counter a range of threats. Watch #NewsNight with @DeeptiSachdeva_ | Last Few Hours For Khamenei's Regime? US Attack Imminent? Chairman of IDSF (Retd) Amir Avivi speaks to NDTV's Deepti Sachdeva, shares his insights on the ongoing Iran-Israel tensions #NDTVExclusive — NDTV (@ndtv) June 19, 2025 'Israel is managing to systematically destroy the ballistic capabilities of Iran,' he said, pointing out that Iran aimed to launch hundreds of ballistic missiles but failed to maintain that momentum. According to him, Israeli strikes have destroyed more than 40% of Iran's launchers, significantly damaging Tehran's ability to sustain attacks. As Israel's defence systems are being tested by Iranian missile attacks, Avivi seems to suggest that the Iron Dome, though under pressure, can hold the line — at least for now. On Thursday, the White House said that President Donald Trump will make a decision on whether or not the US should get directly involved in the Israel-Iran conflict in the next two days. The negotiations or talks weren't off-table, it added.
