Israel’s war with Iran is costing the country up to $1 billion per day, driven by the high price of missile interceptors, infrastructure damage, and prolonged military mobilization. Experts warn that interceptor stockpiles are dwindling fast, threatening national resilience if the war drags on.

Skyrocketing Military Costs

Brig. Gen. (res.) Re’em Aminach, a former financial adviser to Israel’s Chief of Staff, stated that daily war expenditures now reach 2.75 billion shekels ($725 million)—excluding civilian and long-term economic damage. These are split almost evenly between offensive operations and missile defense.

Missile defense alone costs more than $200 million a day, primarily due to the cost of interceptors. Arrow 3 missiles cost $4 million apiece, and David’s Sling interceptors are valued at roughly $700,000 per launch.

Interceptor Stocks Running Low

Israel has used hundreds of interceptors since the war began. Officials now admit that stockpiles are nearing exhaustion. According to U.S. intelligence assessments cited by The Washington Post, Israel may run out of interceptors within 10 to 12 days if current rates continue.

Infrastructure and Civilian Costs Mount

Beyond military expenditures, Iran’s missile and drone attacks have severely damaged Israel’s civilian infrastructure. Strikes have hit oil facilities, airports, and urban centers, including Tel Aviv and Haifa.

Broader Economic Impact and Outlook

The Israeli Finance Ministry has raised its 2025 deficit forecast to 4.9% of GDP and cut GDP growth projections from 4.3% to 3.6%. War-related spending threatens to deepen debt burdens.

“If this lasts a month, the direct cost alone could exceed $12 billion,” said Zvi Eckstein of Reichman University. “That’s not counting lost productivity, tax shocks, or long-term reconstruction.”

Despite mounting costs, Prime Minister Netanyahu continues to stress the goal of eliminating Iran’s nuclear and missile capabilities before agreeing to a ceasefire.

Despite mounting human and economic losses, the Israeli government continues to pursue a war strategy that is becoming increasingly unsustainable. Its insistence on achieving total military victory rather than reducing tensions or pursuing diplomatic alternatives has not only strained the national budget and depleted vital defence resources, but also exposed civilians to increasing risk. Critics argue that this approach reflects a political calculation divorced from material and strategic realities, prioritising tension over security and risking long-term national security for the sake of short-term displays of power.