Economic and humanitarian impact of Israel-Gaza conflict

The military campaign in the Gaza Strip has become the most expensive operation in Israel’s history. Initial reports indicated that costs had reached approximately 420 billion shekels (roughly 142 billion dollars), with the national debt increasing by about 400 billion shekels. Defense spending as a percentage of GDP rose to 7.4% in 2025, exceeding levels seen in other Western nations.

Subsequent projections suggest the total cost of the military campaign may reach $169 billion, with the offensive having already increased national debt by approximately $130 billion. The Ministry of War anticipates allocating nearly $500 billion to the military sector over the next decade to sustain operations.

Parallel to these rising military expenditures, reports from the Coordinator of Government Activities in the Territories (COGAT) indicate an increase in humanitarian aid entering Gaza following an October 2025 ceasefire. Data shows an average of 600 trucks entering the enclave daily, primarily carrying food and medical supplies. While United Nations data suggests improvements in food security and a drop in essential goods prices, international organizations note that significant needs remain due to infrastructure and funding challenges.