Israel’s war cost reaches $15 billion in six weeks

Israel’s war spending reached about $15 billion after six weeks of fighting. According to Calcalist, the current picture is increasing pressure on the 2026 budget while pointing to the country’s shift toward a longer-term military engagement.

According to the report, the Israeli attack, which initially aimed at regime change in Iran, turned into a prolonged war rather than delivering the expected result. This has rapidly increased costs while making the pressure from military spending and on the economy more visible.

Israel’s defense sector has already requested about 39 billion shekels ($12.5 billion) to sustain the ongoing operations. Officials are also said to expect additional budget requests, meaning the total military cost could rise further by 2026.

Meanwhile, spending related to the civilian sphere continues to increase. The number of compensation claims filed over material damage has reached about 26,000. Total compensation to be paid for these claims is estimated at between 1 billion shekels ($318 million) and 1.5 billion shekels ($477 million).

Those payments were reported to be covered by the compensation fund, most of which has already been committed.

The main financial burden, however, was said to stem from state support programs aimed at keeping businesses afloat. Grants provided for lost income have already reached billions of shekels.

Total civilian war-related spending was reported to have exceeded 8 billion shekels ($2.6 billion), bringing the total cost of the war, together with military expenses, to about 47 billion shekels ($15 billion).

The report said that although there are signs of a partial recovery in economic activity, many businesses are still operating below capacity. Some companies were also said to be deliberately reducing their activity in order to qualify for compensation, as they are required to show at least a 25% drop in revenue.

A senior Israeli Finance Ministry official said, “At the moment, we have a kind of safety margin, but it would be better for the war to end quickly.” The official warned that if the fighting continues, the 2026 budget may need to be revised.

The report concluded that a prolonged war could further increase the financial burden by adding pressure on both budget reserves and overall economic stability.