War’s Price: Examining the Economic Devastation in Iran, Israel, and the United States Following the 12-Day Conflict

The 12-day war has come to an end, with Israel declaring the successful demolition of Iran’s nuclear facilities. The United States also asserted its significant role in ending the conflict, citing mediation efforts and direct attacks against Iranian nuclear infrastructure. Now, the countries are assessing the financial costs, recognizing the substantial economic losses incurred. Iran bore the brunt of the conflict, experiencing significant damage to military assets and economic setbacks. The war has deepened Iran’s existing economic vulnerabilities, causing damage to key facilities and a sharp decrease in oil exports. Israel has estimated the damages at $3 billion, with the possibility of a higher figure as assessments continue. The US, through Operation Midnight Hammer, incurred a cost between $1-$2 billion. The Israeli government is considering a mix of financial strategies, including spending cuts, tax increases, and borrowing, to counter the economic impact.