Damage to Israel from the 12-day war with Iran in June 2025 was significant, both in human and economic terms. Iranian missile and drone attacks resulted in 28 deaths, including 27 civilians and one soldier, and over 3,000 people were wounded, with 23 seriously injured. More than 9,000 Israelis were displaced from their homes, many due to damaged or destroyed housing.

Economic losses are estimated at $12 billion in direct damages, with total costs potentially rising to $20 billion when indirect losses are included. Key sectors affected include:

• Infrastructure: Missiles struck the Bazan oil refinery in Haifa, a power station in southern Israel, and the Weizmann Institute of Science, causing hundreds of millions in damages.

• Military and defense: Israel spent approximately $5 billion on offensive and defensive operations, including missile defense systems that cost up to $200 million per day to operate.

• Business disruption: The war caused an estimated $3.5 billion in economic losses due to shutdowns, with $294 million lost per day on average.

• Property damage: Civilian property damage, including homes and vehicles, is estimated at $810 million, with over 45,000 compensation claims filed.

Critical facilities impacted include Soroka Hospital in Beersheba, an elder care facility, a hospital for developmentally disabled children, and the Tel Aviv Stock Exchange, which was directly hit. Despite a 90% interception rate for incoming missiles and drones, 31 ballistic missile impacts occurred in populated or strategic areas.

Israel is expected to increase its budget deficit to around 6% of GDP and may seek additional financial support from the United States to manage reconstruction and defense costs.