12-Day War Hits Iran and Israel Economically

New Delhi : After a tense 12-day military conflict, Iran and Israel have finally reached a ceasefire. However, the economic impact of the short yet intense war has left both countries reeling. Analysts estimate that it will take months if not years for both nations to recover from the extensive financial and infrastructural damage.

According to economic experts, Iran has suffered a GDP loss of approximately 6% to 9% due to the war. The cost includes destruction of critical infrastructure, disruption in oil exports, and the temporary collapse of domestic markets. The war also led to a significant rise in inflation and a dip in foreign investment confidence.

Israel, on the other hand, is estimated to have suffered damages exceeding $3 billion due to Iranian missile strikes targeting its cities and defense infrastructure. While Israel’s Iron Dome defense system intercepted a majority of the projectiles, those that penetrated caused serious destruction to buildings, energy grids, and public services.

Both countries also witnessed sharp declines in stock markets during the conflict, with trade and supply chains being heavily disrupted. Tourism, a major revenue source for both nations, has also taken a massive hit. Airlines have canceled flights, and global travel advisories remain in effect, further worsening the economic toll.

International aid agencies and financial institutions have called for urgent economic assessments and humanitarian support, especially in heavily affected civilian areas. Talks are also underway with global powers to stabilize the region and ensure that hostilities do not resume.

Political analysts believe that while the ceasefire is a welcome move, underlying tensions remain unresolved, posing a risk of future escalations. However, both nations currently appear to be focused on internal recovery rather than military aggression. In the coming weeks, more precise figures on infrastructure losses and recovery budgets are expected from both governments. For now, the focus remains on rebuilding, restoring essential services, and preventing another round of conflict.