Who Paid the Price? A Financial Post-Mortem of the 2025 Iran-Israel Conflict

The recent 12-day conflict between Iran and Israel has concluded, with Israel claiming victory by disabling Iranian nuclear facilities. The United States also highlighted its role in the conflict’s end, via mediation and attacks on Iranian nuclear infrastructure. All parties involved are now evaluating the economic impact. Iran faced the most significant losses, both in military assets and economic terms. The war has amplified the economic strains, which were already strained by international sanctions, dealing a further blow to Iran’s economy. Israel estimates the cost of the damages at $3 billion. The United States’ involvement, through Operation Midnight Hammer, cost between $1 and $2 billion. The Israeli government is exploring a blend of measures, including spending reductions, tax hikes, and increased borrowing, to cope with the economic aftermath.