Missile interceptions, airstrikes push Israel’s war costs to Rs 1,700 crore per day: Report

Missiles fired from Iran are pictured in the night sky over Jerusalem on June 14, 2025.

Israel’s ongoing war with Iran is imposing a massive financial toll, with daily costs estimated at $200 million, according to early assessments reported by The Wall Street Journal. The staggering figure is fast becoming a major factor in shaping the potential duration and scale of the conflict, as military and economic pressures collide.

The most significant cost driver is the interception of Iranian missile attacks. In recent days, Israel has activated its high-end air defense systems, including David’s Sling and Arrow 3, in response to more than 400 missiles launched by Iran. Each interception, the WSJ reported, costs anywhere between $700,000 and $4 million, adding up to tens or even hundreds of millions of dollars per day.

But the burden doesn’t stop at defense. Israel’s offensive operations are also proving costly. Flying advanced F-35 fighter jets over 1,000 miles into Iranian territory reportedly costs $10,000 per hour per jet, not including the high cost of precision-guided munitions such as JDAMs and MK84s.

The Aaron Institute for Economic Policy has estimated that if the war stretches for a month, the total cost could hit $12 billion. As economist Zvi Eckstein explained to WSJ, “This war is far more expensive than Gaza or Hezbollah. The ammunition - defensive and offensive - is the big expense.”

Despite the heavy financial strain, Prime Minister Benjamin Netanyahu has not shown any intention of halting the military campaign until Israel meets key strategic objectives, namely, crippling Iran’s nuclear and missile programs.

Although the Israeli stock market remains relatively stable, and even rose in some sectors, the physical and economic damage on the ground is growing. Missile strikes have damaged hundreds of buildings, leading to reconstruction cost estimates of over $400 million and the evacuation of more than 5,000 civilians. One of Israel’s largest oil refineries was temporarily shut down after being hit, and several critical infrastructure sectors have halted operations.

Former Bank of Israel Governor Karnit Flug told WSJ, “If it is a week, it is one thing. If it is two weeks or a month, it is a very different story,” highlighting how conflict duration will be key to Israel’s economic resilience.