Missiles vs. Defense: Iran-Israel Conflict Costs Don’t Add Up

International Desk

Determining how much money is being spent daily in the ongoing conflict between Iran and Israel is difficult, as neither country fully discloses all data. However, based on analysis of information published in various international and local media, a rough estimate has emerged.

Israel’s war costs are significantly higher. In January this year, a major Israeli newspaper reported that Israel’s war expenses in Gaza had reached \$42 billion, with an average daily expenditure of \$83.8 million. In October 2024, during a single night of defense against Iranian missile attacks, Israel spent \$279 million.

A former Israeli defense official stated that Israel spends approximately \$725 million daily on direct military activities. Half of this goes toward offensive operations, such as airstrikes, weapons, and ammunition, while the other half is spent on defensive measures, including missile interceptions and the deployment of reserve forces.

In April 2024, during a large-scale Iranian missile attack, Israel spent between \$1.08 billion and \$1.35 billion to counter the assault.

On the other hand, Iran’s expenses, while lower, are not insignificant. Analysts estimate that Iran spends between \$460 million and \$650 million daily during active conflict.

Experts say this expenditure goes toward missile launches, military equipment, and other operational activities.

One reason for Iran’s lower costs is their cheaper weapons production. For instance, while an Israeli Arrow missile costs \$3.5 million, an Iranian ballistic missile costs around \$100,000.

These figures are approximate since Iran does not publish detailed military budget data. Additionally, the nature of the conflict can lead to fluctuating expenses.

Both nations are under considerable economic pressure. Israel’s budget deficit reached 8% of GDP in 2024, and its projected economic growth rate for 2025 has been revised downward to 3.6%.

Iran’s economy is also struggling. U.S. sanctions, inflation, and a devaluation of the rial have put them in crisis for a long time. Continuing the war only adds to these challenges. Although oil exports remain Iran’s primary source of income, bringing in \$35 billion in 2023, it is not a stable revenue stream.

Beyond these calculations lie the indirect costs of war. These include losses in the tourism sector, business closures, infrastructure damage, and mental health impacts on the population. While it is difficult to calculate the exact daily costs of these factors, their long-term effects are significant.

Israeli sources have indicated that the combined cost of all conflicts involving Gaza, Lebanon, and Iran from 2023 to 2025 could reach \$67 billion.

In this reality, continuing the fight has become not only a military but also a significant economic challenge for both countries.

**Sources**: Reuters, Times of Israel, Deutsche Welle, Middle East Monitor