The cost of Israel’s wars in the Gaza Strip, Lebanon, Syria and Iran since Oct. 7, 2023 has reached nearly 700 billion shekels, or $205 billion, Israeli media reported.
The figure was included in a report by Nir Goldberg published on Zman Yisrael, the Hebrew-language service of The Times of Israel, which assessed the economic effect of the conflicts on public finances, production losses and U.S. military support.
Citing Bank of Israel data, the report said the cost of the wars to the government has exceeded $118 billion.
Defense spending accounted for around $71.2 billion of the total, while compensation payments reached $9.6 billion, various civilian expenditures stood at $16.7 billion and interest costs linked to higher public debt amounted to $5.5 billion.
The report put the value of U.S. weapons, ammunition and military equipment supplied to Israel at around $26 billion.
It said the economic burden was not limited to public spending, estimating that lost output in the Israeli economy between October 2023 and the end of 2025 reached around $51.9 billion.
Taking into account developments in 2026, the report said the figure could exceed $58.6 billion.
When government expenditures, U.S. aid and lost production are calculated together, the total economic cost of the conflicts reaches nearly $205 billion, according to the report.
The report also noted that increased public spending has led to higher taxes, added to the cost of living and weighed especially on small and medium-sized businesses.
It described the conflicts since Oct. 7 as the most expensive military period in Israel’s history in economic terms, with the consequences likely to continue for years.
