Israel's war with Iran is costing hundreds of millions of dollars a day due to the high cost of interceptor systems, air operations, and damage to infrastructure, putting economic pressure on Israel to end the conflict as quickly as possible, writes the WSJ.
David's Sling and Arrow systems are needed to intercept Iranian missile launches (more than 400 so far), which cost up to $4 million per shot. Missile defense alone costs tens of millions to $200 million daily.
Offensive operations are also expensive. The cost of flying an F-35 is about $10,000 per hour. According to Israel's Aaron Institute for Economic Policy, the total cost of a month-long conflict could reach $12 billion.
Damage to civilian infrastructure is another significant expense. Hundreds of buildings have been damaged, and the restoration cost is expected to exceed $400 million. The government has also displaced and housed more than 5,000 people.
Despite the increase in military spending and the temporary economic downturn, markets remain bullish, and economists are not yet predicting a recession. However, the longer the war lasts, the greater the financial damage.
