Ceasefire Ends the War, But Economic Aftershocks Continue for Iran and Israel

World News: Even though a ceasefire has been declared after the 12-day conflict in West Asia, its economic repercussions for Iran and Israel are far from over. Both countries have suffered severe blows to their infrastructure, trade systems, and national budgets, with military expenditures further destabilizing their economies. The United States, which strategically intervened in the conflict, also paid a significant price for its involvement.

Iran Suffers the Heaviest Economic Blow

Iran was already under intense economic strain due to years of U.S. and Western sanctions. This recent war has deepened the crisis. Experts estimate that Iran has lost approximately 6% to 9% of its GDP—a catastrophic loss by any standard. Bombings and missile strikes have left oil refineries, nuclear facilities, and communication systems in ruins.

Attacks on oil infrastructure have particularly impacted Iran’s most vital source of income. As a result, the country’s foreign exchange reserves have been depleted, and its ability to fund reconstruction has been significantly weakened.

Israel Faces an Unprecedented Reconstruction Challenge

Israel has not been spared either. According to estimates, the country has suffered losses ranging from $3 to $6 billion due to the conflict. Missile strikes in several cities, including the capital, Tel Aviv, caused widespread damage to infrastructure, forced the closure of numerous small businesses, and displaced thousands of citizens to temporary shelters.

Economic experts in Israel have described this as one of the most expensive wartime periods in the nation’s history. In addition, the Israeli government is now diverting significant funds from its defense budget to support relief and rebuilding efforts.

U.S. Bears the Cost of ‘Operation Midnight Hammer’

The United States, acting in support of Israel, reportedly launched "Operation Midnight Hammer" to target Iranian nuclear sites. The cost of this military operation is estimated at around $1.5 billion. While the U.S. economy is capable of absorbing this expense, the mission has inevitably influenced its strategic calculations in the Middle East.

War Has Ended, But the Road Ahead is Long

Although hostilities have ceased, both Iran and Israel now face a prolonged economic struggle. Repairing billions of dollars in damages and rebuilding essential infrastructure will be a long, costly, and complex process. This conflict has shaken the broader stability of West Asia, with geopolitical ripples likely to be felt around the globe for months—if not years—to come.