Israel’s War Costs Skyrocket: One Day of Fighting Now Tops 425 Million Shekels

As Israel’s ongoing conflict in Gaza reaches its 600th day, the financial toll on taxpayers continues to escalate, with a single day of intense fighting costing approximately 425 million shekels ($113 million), according to estimates from Bank of Israel and discussions in the Knesset Finance Committee. The total war expenditure has surpassed 300 billion shekels ($80 billion), exceeding earlier projections of 250 billion shekels by the end of 2025, driven by costs for reservist mobilization, munitions, fuel, and Houthi missile interceptions, which range from 2 to 6 million shekels per event.

Bank of Israel, known for its impartial assessments, provides the most reliable figures, incorporating data from the Ministry of Finance and other sources. The Knesset Finance Committee recently reviewed the staggering costs of reservist days, with an average daily cost of 1,612 shekels per reservist, totalling 50,000 shekels monthly per soldier. Beyond direct combat expenses, indirect costs such as treating wounded reservists, supporting civilians in the home front, and addressing post-traumatic stress among veterans pose long-term economic burdens. Maintaining Gaza under current low-to-medium intensity operations, akin to expanded security duties, costs taxpayers 42 million shekels daily, covering troop presence and basic supplies outside humanitarian aid. Expanded Israeli control over Gaza could significantly inflate these figures.

The recent escalation, if sustained for three months, could add over 30 billion shekels to the war’s cost, including Gaza’s upkeep. However, senior economists suggest a ceasefire and hostage release in the coming days could drastically reduce expenses, leaving only Gaza’s ongoing maintenance, still a substantial cost. Without a clear “day after” strategy, Israel risks a perpetual daily expenditure of 42 million shekels on Gaza alone. The war’s economic impact, compounded by global inflation and regional instability, including Houthi attacks from Yemen, threatens Israel’s fiscal stability, with taxpayers likely to feel the strain for years.