Israel’s Budgetary Breaking Point: Why Its Economy Cannot Underwrite a Protracted War

Tuesday, June 24, 2025  Read time1 min

SAEDNEWS: A member of Israel’s Chamber of Commerce warns that soaring military expenditures and mounting reparations from Iranian missile strikes have pushed the country’s fragile economy to the brink, leaving it unable to sustain a long‐term conflict.

Israel’s Budgetary Breaking Point: Why Its Economy Cannot Underwrite a Protracted War

According to Saed News, Ahmed Iman-Doost cautions that the daily cost of air operations against Iran—estimated at $200–$400 million—combined with missile-induced infrastructure losses, has rapidly depleted Israel’s defence coffers. Drawing on historic precedents, he notes that once engagements escalate beyond short, targeted raids into multi-front hostilities—encompassing Lebanon, Syria and Gaza—weekly bills can soar to $2–$5 billion.

Ahmed Iman-Doost

Israel’s total 2024 budget stands at roughly ₪500 billion (about $135 billion), of which $27–$28 billion is earmarked for defence, partly underwritten by $3.8 billion in U.S. annual aid. Yet, with a significant share already expended in the first months of conflict, continued high-intensity operations risk exhausting both fiscal reserves and public tolerance.

Geography and adversary capabilities compound the strain. The logistical burden of striking targets across 1,000 km, coupled with Iran’s layered air defences, compels Israel to deploy costly precision munitions and sustain elaborate support chains. Domestic pressures—rising living costs, business disruptions and wavering investor confidence—further limit appetite for an enduring war. Absent direct, substantial U.S. fiscal and material backing, Mr. Iman-Doost argues that Tel Aviv’s only viable approach lies in calibrated, short‐duration strikes rather than an open-ended campaign.



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