According to a report by the Israeli business newspaper Calcalist, the direct economic cost of the war is very heavy for Israel. It is spending billions of dollars every day on the military, which includes missile interceptors, flying F-35 aircraft and ammunition. The cost of the first missile attack on iran alone was estimated at $593 million. Apart from this, the deployment of thousands of reserve soldiers has affected the labor market and industrial production has fallen sharply. Tourism and exports have also been hit by the closure of airports.
At the same time, Iran's situation is no less serious. Although its economy was already under pressure due to US sanctions, now its oil exports have also come under threat due to the war. Currently, most of Iran's oil is exported to china at concessional rates. If oil pipelines or refineries are damaged due to the war, then this revenue source may also come to a halt. Also, the Iranian currency 'Rial' is devaluing rapidly. In 2024, its value was recorded to have fallen by 50 percent, which may happen even more.
Possible economic picture after the war
According to a report by Calculator, if the war continues for a long time, then Israel's economy can be affected heavily. The defense budget for 2025 has already reached $ 38.6 billion and the total budget is above $ 215 billion.
In such a situation, it is estimated that if the war lasts for more than a month, then only military expenditure can cross $ 12 billion. Due to this, Israel's budgetary deficit can reach 5 percent of GDP. Also, the high-tech sector, which is based on foreign investment and innovation, can also be badly affected by this instability.
If we look at iran, its situation has a slightly different form. The IMF has projected Iran's economic growth rate at 3.1 percent in 2025, which shows that the country has kept itself stable to some extent despite the sanctions. According to a report by Iranian news website iran Front Page, Iran's current account surplus is expected to be up to $13.9 billion.
But all this is only till its oil infrastructure does not suffer any serious damage. If refineries or gas fields are attacked due to war, then revenue can fall by up to 40 percent.
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