Israel Spends 450 Billion Won in 11 Days of Rocket Fire, Ultimately Approves Ceasefire

$160 Million Loss in Three Days of Fighting
Economy Shrinks 4.5% Last Year Due to COVID-19
Israeli Business Sector Persistently Demands Ceasefire

[Image source=EPA Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] Israel and the Palestinian armed faction Hamas have agreed to an unconditional temporary ceasefire after 11 days of conflict. Although the Israeli government had stated it would continue the fighting, it ultimately approved the ceasefire due to the skyrocketing war costs and pressure from the United States, which threatened to cut military support. It is estimated that Israel spent over 450 billion KRW just on the Iron Dome interceptor missiles used to block Hamas rockets during the conflict.

According to local media such as The Times of Israel on the 20th (local time), the Israeli Security Cabinet held a meeting and resolved to accept the ceasefire mediation proposal between Hamas, proposed by the United States and Egypt. The Israeli Security Cabinet announced, "We unanimously voted to enter into a ceasefire without any conditions." Thus, a ceasefire between Israel and Hamas was achieved after 11 days of conflict.

Until the day before, the Israeli government had stated it would continue the fighting, but under international and U.S. pressure for a ceasefire and the difficulty of bearing the enormous war expenses incurred so far, it is understood that they accepted international mediation. According to major foreign media, Israel's economic sector and scholars have persistently urged a ceasefire, warning that prolonged war could lead to an economic crisis. Last year, Israel's Gross Domestic Product (GDP) growth rate recorded a negative growth of -4.5% due to COVID-19.

The Israel Manufacturers Association reported that the pure loss amount during the early conflict period from the 11th to the 13th, when Hamas rocket attacks were concentrated on Israeli industrial zones, was estimated at 166 million USD (approximately 188 billion KRW). During the conflict, 12 casualties and about 200 injuries occurred in Israel, and factories and airports around Tel Aviv were closed, causing additional significant damage.

The cost estimated to be even greater was the Iron Dome missile interception defense system, which blocked Hamas rockets throughout the conflict. According to the British BBC, the price of one Iron Dome interceptor missile is about 100,000 USD. During the 11-day conflict, Hamas is estimated to have launched about 4,000 rockets, and the Israeli Air Force stated that most were intercepted. Considering this, it is estimated that at least 400 million USD was spent on interception costs. Hamas rockets are known to cost less than 300 USD each.

This content was produced with the assistance of AI translation services.