Daijiworld Media Network- Tel Aviv

Tel Aviv, Jun 27: In a stark revelation of the economic fallout from its 12-day conflict with Iran, Israel has estimated direct damages at $3 billion, primarily to repair missile-struck buildings and compensate businesses disrupted by rocket fire.

The figure, released by Israel’s Finance Ministry and Tax Authority, paints a grim picture of how deeply Iran’s unprecedented missile barrage penetrated Israeli defenses. Shay Aharonovich, Director General of the Tax Authority, described the scale of damage as "unparalleled in Israeli history." He confirmed that thousands of buildings across central and northern Israel suffered damage, and hundreds of businesses are now eligible for emergency financial relief.

“This is the greatest challenge we've ever faced,” Aharonovich stated, adding that compensation disbursement is already underway, but full recovery may take months, if not years.

The $3 billion figure does not include military losses, such as depleted Iron Dome interceptor stocks, air defense systems, or the cost of retaliatory operations carried out by the Israeli Defence Forces (IDF).

Finance Minister Bezalel Smotrich indicated the final bill could exceed $12 billion once military expenses and broader economic disruption are factored in. “We are talking about one of the most financially draining episodes in Israel’s modern history,” he remarked during a press briefing.

Analysts say this is the largest financial strain on the Israeli treasury since the 2006 Lebanon War. The government is now considering emergency budget revisions, as well as international support to shore up defense preparedness.

While the active phase of the conflict has ended, the economic aftershocks are far from over, and rebuilding efforts are expected to stretch deep into 2026.