Israel, despite its 'impenetrable' air shield called Iron Dome has suffered heavy losses in missile strikes by Iran. Tel Aviv has suffered at least $3 billion in damage, according to estimates. The director general of Israel's Tax Authority while speaking to Bloomberg acknowledged, "This is the greatest challenge we've faced - there has never been this amount of damage in Israel's history." The $3 billion in damage caused by Iranian missile strikes includes funds that will be needed to repair missile-hit buildings as well as compensation that will be paid to local businesses and does not include the cost of replacing weapons and defense systems used in the campaign. If the total cost of war is considered, the cost could then run as high as $12 billion, according to the Israeli Finance Minister Bezalel Smotrich address to the media, reported Bloomberg. This considers compensation of approximately 5 billion shekels to be paid to businesses for facing losses. While Amir Yaron, Bank of Israel Governor put this estimate at approximately $ 6 billion. In an interview to the media outlet, he said that the 12-day war with Iran cost Israel nearly 1% of its GDP or about 20 billion shekels ($5.9 billion). The Iran-Israel war began on 13 June 2025, when Israel launched surprise attacks on key military and nuclear facilities in Iran, claiming Tehran was close to building a nuclear weapon. Iran says it is operating an entirely peaceful nuclear programme for civilian purposes. On 24 June, both the countries agreed to a ceasefire brokered by the United States. Despite initial violations by both Iran and Israel, the ceasefire holds as of 29 June.