The devastation wrought by Iran’s missile and drone assault on Israel over the past two weeks has resulted in an estimated NIS 5 billion ($1.47 billion) in property damage—roughly double the total damages recorded from the October 7 Hamas invasion and the subsequent 20 months of conflict combined, a top official revealed, the Times of Israel reports.
Amir Dahan, who heads the Compensation Department at Israel’s Tax Authority, told the Knesset Finance Committee that the unprecedented toll was due to the sheer force of the few Iranian missiles that breached Israel’s air defenses. “These are figures we have never seen for direct property damage,” he said. The limited number of successful strikes nevertheless caused widespread destruction, demolishing entire apartment complexes and triggering shockwaves that shattered windows across multiple city blocks.
As of Monday, claims related to Iran’s ballistic missile attacks had already reached NIS 4.5 billion ($1.32 billion), with estimates suggesting another half-billion shekels still to come. By contrast, total damages from October 7, including destruction from Hamas, Hezbollah, and the Houthis, have added up to roughly NIS 2.5 billion ($735 million).
More than 40,000 claims tied to the latest escalation have been submitted so far, and officials expect that figure to climb past 50,000, particularly as factories and businesses continue to evaluate the impact. Whether that projection takes into account the ceasefire announced Tuesday morning—brokered by the United States—remains unclear.
Although the financial toll is greater, the current number of claims is still lower than the 70,000 filed between October 7, 2023, and June 12, 2025, reflecting the prolonged nature of the earlier conflict.
Israeli authorities report that Iran launched more than 550 ballistic missiles during the 12-day conflict. Just 31 of those missiles reached populated areas, yet the damage was severe. Tehran also launched roughly 1,000 drones; only one succeeded in striking a residential building—in Beit She’an. In addition to direct impacts, falling debris from interceptors and missile fragments contributed to damage in multiple locations.
Among the most damaging incidents were direct hits on the Weizmann Institute in Rehovot and the Bazan oil refinery in Haifa. While specific damage estimates were not disclosed, Dahan acknowledged both were severely impacted.
Of the 38,700 damage claims submitted before Tuesday’s rocket attack in Beersheba, which destroyed a residential building and killed four people, about 31,000 were for structural damage, 3,700 for vehicles, and 4,000 for personal property such as appliances and furniture.
Tel Aviv accounted for roughly 25,000 of the total claims, followed by Ashkelon (10,800), Haifa and Acre (2,600), and Yerushalayim (94), based on partial Tax Authority data.
Roughly 11,000 people whose homes were rendered uninhabitable are currently being housed in hotels, while another 4,000 have found shelter with family or friends, according to the Federation of Local Authorities. The Interior Ministry recently confirmed that homeowners whose residences were destroyed or severely damaged in the war will not be responsible for paying property taxes during the period of displacement.
Before Israel launched its preemptive strike on Iran’s nuclear infrastructure on June 13, the country’s property compensation fund held NIS 9 billion ($2.64 billion). Since then, the fund has received NIS 6 billion ($1.76 billion) in new claims related to the Iranian assault, in addition to NIS 1.5 billion ($440 million) still pending from the earlier round of fighting.
Dahan noted that 130 appraiser teams are actively deployed across the country, attempting to visit damage sites the same day claims are filed. A new digital platform has also been introduced, allowing residents to upload images of damage and receive compensation of up to NIS 30,000 ($8,815) within 72 hours.
Homeowners can also claim compensation for personal belongings: up to NIS 25,187 ($7,400) for furniture and NIS 30,914 ($9,084) for electronics. For larger claims, the government offers a supplemental insurance plan at an additional 0.3% premium on the declared value. While only 600 Israelis were enrolled in this plan before the current war, over 50,000 have joined since the launch of Operation Rising Lion, according to a Calcalist report.
The financial shockwave has rippled far beyond physical destruction. Economic paralysis due to emergency regulations has shuttered schools and businesses, prompting the Finance Ministry to unveil a comprehensive relief package for those affected.
Under the plan, small businesses earning less than NIS 300,000 ($86,000) annually will receive fixed continuity grants based on assessed damages. Larger businesses—with annual revenues up to NIS 400 million—will be eligible for partial reimbursement of their operational expenses, calculated between 7% and 22% of losses. Additionally, they will be refunded for up to 75% of their salary expenses tied to war-related disruptions.
The maximum compensation for businesses earning up to NIS 100 million ($28 million) has been set at NIS 600,000 ($172,000).
{Matzav.com Israel}