Arabic version: التكلفة المالية للصراع المستمر في غزة
Since its genocidal war on Gaza began in October 2023, Israel has engaged in extensive military operations in Gaza, leading to significant humanitarian and economic consequences. The conflict has resulted in the deaths of more than 72,000 Palestinians, including tens of thousands of women and children, with some independent researchers suggesting that the death toll is higher than 75,000. According to Al Jazeera, the war has also severely impacted the survivors, many of whom are suffering from deliberately imposed starvation due to Israeli policies.
Economically, the war has cost Israel approximately 352 billion shekels ($113 billion), which encompasses direct defense expenses, civilian outlays, and interest payments. The former chief military economic adviser, Gil Pinchas, estimated that the war has cost Israel around 150 billion shekels ($48 billion) to date, translating to an average daily expenditure of 300 million shekels ($96.8 million). This staggering financial burden reflects the extensive military resources deployed in ongoing operations.
The cost of munitions used in the conflict has been substantial, with estimates indicating that Israel has spent 340 billion shekels ($109.8 billion) on munitions since the conflict began. However, a significant portion of this expenditure has been allocated to purchasing arms from domestic manufacturers, which may mitigate some adverse effects on the Israeli economy. The costs associated with military operations are not solely financial; they also encompass the economic impact of mobilizing a large number of reservists, with upwards of 300,000 deployed during the first year of conflict.
The broader implications of the conflict extend beyond immediate military costs. The Israeli Treasury has reported expenditures of approximately 70 billion shekels ($22.6 billion) on reserve forces alone, alongside an estimated 15.37 billion shekels ($4.9 billion) for maintaining active-duty personnel in 2025. As military budgets remain high, projections suggest that the total cost of the war could reach a minimum of 500 billion shekels ($161 billion) over the next decade.
Internationally, the United States has also invested heavily in support of Israel’s military efforts, providing approximately $21.7 billion in military aid since October 7, 2023. Additionally, US operations in support of Israel across the Middle East have incurred costs ranging from $9.65 billion to $12.07 billion, bringing total US financial involvement to between $31.35 billion and $33.77 billion.
Looking ahead, the United Nations has estimated that rebuilding Gaza will require around $70 billion and take several decades, as the military operations have devastated essential infrastructure and left the population facing extreme, multidimensional impoverishment. The long-term consequences of this conflict will likely resonate for generations, affecting both the region and global perceptions of the ongoing crisis.
