Escalating war costs Israel $133 mln daily, straining economy

TEL AVIV

The daily cost of Israel's wide-scale assaults on the Gaza Strip and Lebanon has reached $133 million (500 million shekels), according to an analysis by an Israeli daily citing official figures and sources.

Israeli daily Yedioth Ahronoth reported noted that Israel's military operations have amassed a total cost of $6.6 billion (25 billion shekels), with the surge largely attributed to the recent deployment of tens of thousands of reserve soldiers to the Lebanese front. The military is consuming vast amounts of munitions and high-cost air defense missiles daily.

The article also mentioned that airstrikes targeting slain Hezbollah's chief Hassan Nasrallah alone have incurred a cost of $6.6 million dollars.

A source from the Israeli Finance Ministry indicated that the rising war expenses, combined with the delay of an $4.8 billion dollars aid package from the U.S. until next year, are expected to push Israel's 2024 budget beyond its limits for the third time.

The report further emphasized the strain the prolonged conflict poses on Israel's economy, making the continuation of simultaneous wars in Gaza and Lebanon increasingly untenable.

Security worries deter investment in new business, while disruptions in flights have kept many visitors away, cutting into the tourism industry.

Meanwhile, the government is paying for housing for thousands of people who had to leave their homes in the south near the border with Gaza and in the north where they were exposed to fire from Hezbollah.

One of the biggest concerns is the open-ended nature of the fighting, which has lasted more than a year. Israel's economy rebounded quickly from a 2006 war with Hezbollah in southern Lebanon. But that conflict lasted only 34 days.

Economist Eckstein said a budget that includes some tax increases and cuts in social spending would be needed to support a postwar rebound and pay for likely higher ongoing defense costs.

Meanwhile, AFP reported that some Israeli entrepreneurs have sought a different avenue to release hostages, offering a financial reward for those who choose to free them.

Former SodaStream CEO Daniel Birnbaum, for example, said that he had received around 100 calls after announcing on social media platform X that he would give $100,000 in cash or bitcoin to "anyone who delivers from Gaza a living Israeli prisoner.”