PNN – Analysts believe that economic pressure has trapped the Zionists in a stalemate in the war even before military attrition.
According to the report of Pakistan News Network, several weeks after the reckless war between the United States and the Zionist regime against Iran, which resulted in a crushing response from our country, the consequences of this war on the lives of Zionists at various levels have quickly become apparent, and evidence indicates the inability of the occupying regime to tolerate these consequences.
The Quick and Surprising Cost of War with Iran for the Zionists
Yousef al-Rais, a prominent Arabic-language writer, wrote in an article on the Al-Ahed website to this effect: The Zionist regime, in its military escalation, adopted a policy of lightning attack, hoping to quickly collapse the axis of resistance by targeting its leaders, and ultimately martyring Imam Seyyed Ali Khamenei, the leader of the Islamic Ummah. However, this estimate did not take into account the transformation of the confrontation into a long war of attrition, the effects of which would directly reflect on the Israeli economy.
In this context, the economic cost stands out as a determining factor in the course and outcome of the war. The Israeli regime entered the war with an economy that was essentially depleted as a result of the Gaza war. According to a Bloomberg report, Israel lost an estimated 8.6% of its GDP, equivalent to $57 billion, over the two years to 2025, as a result of the almost permanent state of conflict.
According to the report, with the outbreak of war with Iran, the Israeli economy found itself facing a dual challenge: financing military operations on the one hand, and containing the economic recession on the other.
At the level of direct costs, the figures indicate a very high pace of spending. According to the Hebrew newspaper Haaretz, the IDF’s spending in the first twenty days was about $6.4 billion, with a daily average of almost $320 million. The overall budget for the war is estimated at $12.5 billion, with expectations of increasing as the operation continues.
But in another report by the Anadolu Agency, much higher figures emerged, with the cost of Israeli missile defense systems ranging between $10 million and $200 million per day, while military spending in the first week of the war was around $5 billion, with an average of $725 million per day, indicating a high level of financial erosion.
Of course, these expenditures were not limited to military operations, but also included the allocation of emergency funds for the purchase of urgent security equipment, in light of reports of a shortage of interceptor missiles, indicating a growing pressure on the Israeli regime’s defense and financial capabilities at the same time, a factor that led the regime’s military to prepare to request additional funds.
Accordingly, the Israeli cabinet approved an emergency budget allocation of $825 million for the purchase of urgent security equipment, and Tel Aviv is expected to revise its spending plan in 2026 to finance the purchase of security equipment, according to what the regime’s Channel 12 reported.
How the war with Iran paralyzed the Israeli economy in a matter of weeks
But as for the indirect costs, these are reflected in the profound impact on the Israeli economy. The Israeli Ministry of Finance has warned that the cost of the war could reach $3 billion per week if restrictions on economic activity continue. This is due to the closure of large sectors as a result of the closure of educational institutions, the call-up of large numbers of workers to serve in the army reserve, in addition to security restrictions that hinder the movement of production and labor.
Accordingly, according to the Times of Israel, Ilan Roum, Director General of the Israeli Ministry of Finance, asked Shai Klaber, Commander of the Home Front Command, to ease restrictions to allow for the gradual and partial reopening of companies and workplaces, but the Home Front Command in the IDF declined to comment.
This fact shows the extent of the war’s impact on the Israeli economic cycle, where large sectors are disrupted as a result of the closure of educational institutions and the call-up of reserve forces, which limits production capacity and leads to a decrease in tax revenues.
In an interview with The Times of Israel, Zionist economist and professor of economics at Hebrew University, Esteban Klor, noted that the direct cost of the ongoing war is the main burden on the economy, even beyond the effects of rising energy prices. In this situation, Israel is forced to increase borrowing and finance budget deficits, which means shifting the cost of the war into the future, with all the burdens this places on fiscal stability.
In addition, other indicators also show additional pressures on the Zionists, such as the army’s shift to using older, less accurate ammunition in order to reduce costs, indicating an attempt to manage resources in light of the increasing cost of war.
The Israeli military is using weapons stored for half a century to attack military bases in Iran, the occupation’s Kan network reported. The move, according to the report, is aimed at cutting costs and emptying old stockpiles.
In addition, the Israeli economy suffered direct material losses from the damage caused by the attacks. The Israel Tax Administration reported registering over 10,000 compensation claims (10,314 claims) as of mid-March 2026, including 7,250 claims for damage to buildings, 1,770 claims for damage to vehicles, and 1,130 claims for damage to property and equipment.
These injuries were geographically concentrated in vital areas, with some 5,300 claims registered in Tel Aviv and 3,900 in Ashkelon, in addition to claims in Jerusalem, Acre, and Tiberias. All of this means that the economy imposes its own rhythm on the war, and as the cost of war increases, the margin for political and military maneuver shrinks, and as the erosion continues, military decisions are determined not only by field considerations but also by the economy’s ability to finance them.
The course of war is thus determined not only by what happens on the battlefield but also by what passes in the public treasury. When the economy reaches its maximum capacity, cost becomes a factor of pressure that leads to a recalculation and perhaps an end to the war itself. Ultimately, it may not be military capacity that determines the fate of the confrontation, but economic cost that imposes a realistic ceiling on the continuation of the war. Here, the economy is transformed from a mere support instrument into a determining element that charts the course and end of the war.