The historic 12-day war has officially come to an end. Israel claimed its objective- to dismantle Iran’s nuclear facilities- has been achieved. The United States also asserted that it played a key role in ending the conflict, both through mediation and direct action against Iran’s nuclear infrastructure, which it described as a threat to global security. And now the countries are in a stage of auditing their loss economically. Yes, they realise that the war was a costlier affair, which cost them significant financial losses. Which countries suffered the greatest technological and economic losses? Here’s a broader overview of the damage assessment, including the loss of military assets, human lives, and the scale of aerial strikes.
Who Suffered The Most?
The assessment reveals that Iran suffered the most severe blow, both in terms of military assets and economic impact. With the country already strained by decades of Western sanctions, the 12-day war has dealt an additional blow to its path of economic growth. Damage to all three nuclear facilities is a major setback for the Muslim country. In Iran, more than 620 people, including 12 scientists and 20 senior commanders, were killed, while more than 4870 people suffered injuries. Israel lost the lives of 28 civilians and 3,200 were injured, with 0 loss of Israeli soldiers.
Iran’s Financial Loss
In an interview with TRT World, Krieg, a defence analyst, estimated the total direct and indirect losses between $24–$35 billion. This is equivalent to approximately 6.3 – 9.2% of Iran’s estimated $380 billion GDP. Apart from this US and Israeli strikes degraded Iran’s nuclear infrastructure and caused a sharp drop in Tehran’s oil exports. TRT World reports also say that the damage to energy installations and military infrastructure threatens to deepen Iran’s structural weaknesses and delay its post-war recovery.
Israel’s Loss
Israel has estimated the cost of damages incurred during its 12-day war with Iran at $3 billion, with funds needed both to repair missile-hit buildings and pay compensation to local businesses. This sum doesn’t include the cost to Israel of replacing weapons and defence systems used in the campaign. If that is included, it is likely to push the total cost of the war significantly higher once assessments are complete.
$3 billion, shared by the Israeli finance ministry and tax body, indicates the extent to which Iran broke through Israel’s defences during nearly two weeks of rocket fire. According to a Bloomberg report, Shay Aharonovich, the director general of Israel’s Tax Authority, who is in charge of paying out compensation, said, “This is the greatest challenge we’ve faced — there has never been this amount of damage in Israel’s history.”
Israeli Finance Minister Bezalel Smotrich told a press conference that the war could cost them as high as $12 billion. However, Bloomberg reports that the Bank of Israel Governor Amir Yaron has put the figure at about half. Whatever the final figure, that presents a challenge to an economy already strained by 20 months of wider conflict. Israel’s central bank projects economic growth of 3.5% for the year, though this may be impacted by the recent war.
What Israel Is Considering
Currently, the Israeli government is considering a mix of spending cuts, tax increases, and additional borrowing. This is because the Jewish country is expected to push public debt beyond 75% of GDP. The Finance Ministry has requested $857 million as emergency funding for the defence. However, there will be financial cuts to critical sectors such as health, education, and social welfare as part of the steps to compensate for the loss. The decision has invited sharp criticism inside the country.
Trump’s Operation Midnight Hammer
The United States also entered the Israel-Iran war in its final stages, launching Operation Midnight Hammer, which targeted Iran’s nuclear installations. The operation is estimated to have cost the U.S. around $1–2 billion. It involved a massive assault using 125 aircraft and dozens of Tomahawk missiles and bunker-busting bombs, striking key Iranian nuclear facilities, including those in Fordow, Natanz, and Isfahan.
What Happened On June 13
Israel launched an initial barrage of drones and missiles at Iran on June 13, and the two sides exchanged regular fire until US President Donald Trump declared a ceasefire in the early hours of Tuesday. Israeli emergency services said 28 people were killed in missile attacks and more than 1,300 injured, while Iran’s government reported 627 people killed.
