The war with Iran has cost Israel about NIS 35 billion ($11.5 billion) in budgetary expenses, according to an initial estimate released by the Finance Ministry on Sunday.

The ministry cautioned that the Israeli-American 40-day campaign against the Islamic Republic incurred high economic costs, including the loss of GDP to the economy and an increase in state spending, some of which will only become fully clear in the future.

The bulk of the cost comes from an estimated NIS 22 billion in defense and military spending for the IDF, Defense Ministry, National Security Ministry, and other security organizations. It includes expenditures for military equipment, with another significant component being the expansion of the mobilization of reserve forces beyond what was planned. The amount was already added to the Defense Ministry budget as part of the state budget for 2026, the Finance Ministry said.

“The functioning of the Finance Ministry and responsible management of the country’s economy were a critical factor in the great operational success,” said Finance Minister Bezalel Smotrich. “The employees of the Finance Ministry are full partners in the great successes on the front and in our tremendous achievements against Iran.”

The joint offensive launched on February 28, aiming to degrade the Iranian........

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