Iran-Israel War 2025: How much did deadliest 12-day conflict of 2025 cost, know who lost more

Modern wars in the 21st century are not only destructive but also incredibly expensive. The recent 12-day war between Iran and Israel is a strong example of this. Though a fragile ceasefire is now in place, both countries are counting their financial losses, which have reached billions of dollars. The fighting caused widespread damage to infrastructure and delivered a severe blow to their economies, especially Iran's, which was already under pressure due to decades of Western sanctions.

According to defence expert Andreas Krieg, Iran may have lost close to 6–9% of its GDP, with overall damages estimated between USD 24 billion and USD 35 billion. Iran's nuclear facilities were hit hard by attacks from Israel and the US, and it could take a long time for the country to restore its nuclear capabilities. On top of that, its oil exports—vital for the Iranian economy, have been affected by strikes on key energy installations. This disruption will likely slow down any hope of a quick recovery for Iran.

Israel Faces Costliest Conflict in Its History
Israel, too, has suffered heavily. Bloomberg reports that missile damage caused by Iran could cost more than USD 3 billion, which includes rebuilding infrastructure and compensating local businesses. Shay Aharonovich, head of Israel’s Tax Authority, said that this was the worst destruction the country had ever seen.

Finance Minister Bezalel Smotrich earlier suggested the war might cost up to USD 12 billion, while Bank of Israel Governor Amir Yaron offered a lower estimate of around USD 6 billion. To manage the financial crisis, the Israeli government is now considering a mix of spending cuts, tax increases, and borrowing, which may push public debt over 75% of GDP. A request for USD 857 million in emergency defence funding has been made, while USD 200 million in cuts are being proposed in sectors like healthcare, education, and social welfare, moves that have triggered public criticism.

In another controversial move, Israel has imposed a travel ban on Jewish citizens, reportedly to prevent the outflow of money and people.

US Involvement and Operation Midnight Hammer
The United States also played a role. Former President Donald Trump authorised Operation Midnight Hammer, a major airstrike against Iranian nuclear facilities like Natanz, Fordow, and Isfahan. The operation, which involved 125 aircraft and multiple missiles, is believed to have cost USD 1–2 billion.

The War Is Over, But Its Impact Remains
Though the fighting has stopped for now, the effects of the war are far from over. In total, early estimates suggest the cost of this short but intense conflict could go beyond USD 40 billion across Iran, Israel, and the US. Beyond the money, the war has affected regional security and changed political relations in West Asia.

While the skies are quiet now, the economic and political aftershocks of this war will be felt for years to come.