Iranian Ballistic Missiles: What Have They Done to Israel?

While the Israeli response to Iran’s attack in April, involving drones and cruise missiles, cost around $1.3 billion, the financial toll of the second Iranian attack on Israeli sites and infrastructure on Tuesday, October 1, 2024, is expected to be even higher. This is particularly true given the type of missiles involved—the hypersonic ballistic missiles.

Iran launched approximately 200 ballistic missiles targeting various Israeli locations and cities. This was in retaliation for the assassination of Ismail Haniyeh, head of Hamas’s political bureau, in Tehran in July, and the assassination of Hassan Nasrallah, the Secretary-General of Hezbollah, a few days ago in Beirut.

The Iranian attack caused significant economic damage to Israel, though the authorities have remained tight-lipped about the true extent of both material and human losses. These repercussions extended beyond Tel Aviv, affecting global financial markets and oil prices amid the ongoing tensions in the Middle East.

What Is the Cost of Defending Against Iranian Ballistic Missiles?

The launch of dozens of missiles within a short timeframe not only overwhelms Israeli air defenses but also depletes them, according to a report by The Guardian.

Given that Israeli air defenses, including the Iron Dome and David’s Sling systems, rely on advanced interceptor missiles, the cost of these defenses is extremely high.

The Guardian stated that intercepting ballistic missiles in mid-flight is primarily the job of long-range American and Israeli systems like the Arrow 3 and Arrow 2, used for the first time during the Gaza war, supported by the medium-range David’s Sling system. The widely known Iron Dome is typically used to intercept short-range rockets, often launched by Hamas from Gaza.

A former financial advisor to the Israeli occupation army’s Chief of Staff estimated in April that each American-made Arrow missile, used to intercept ballistic missiles, costs $3.5 million. In contrast, Israel’s David’s Sling interceptor missiles cost $1 million each, according to The Guardian.

Reports also indicated that Israel submitted an “expanded” request two weeks ago to the U.S. administration for additional munitions and weapons to replenish its depleted stockpiles, which have been strained by the escalation with Hezbollah.

According to Middle East Eye, American officials stated that one of the weapon systems Israel seeks to replenish is the Arrow missile defense system.

How Did Air Travel to Israel Get Affected?

According to Israel’s economic site Globes, Iran’s attack on Israel led to a one-hour closure of the country’s airspace. Takeoff and landing operations were halted, and flights were redirected to alternative airports outside Israel.

Hebrew media reported that additional airlines canceled their flights to Tel Aviv following the Iranian attack and the closure of Israeli airspace. Among them were airlines that had not previously suspended flights to Tel Aviv, despite the escalating tensions between Israel and Hezbollah.

Channel 13 reported that FlyDubai, which had operated eight daily flights since the Gaza war began, suspended all flights to Tel Aviv until Thursday morning. Other airlines that suspended their operations included Ethiopian Airlines, which had maintained its flights to Tel Aviv nearly uninterrupted.

Several other airlines also announced flight cancellations or schedule changes, including Wizz Air, Air France, Air Europa, Aegean Airlines, and Bulgarian Airlines.

Damage to Homes

Israel imposed a strict media blackout on the true extent of damage and casualties due to military censorship, but Hebrew media reported that over 100 homes in the central Israeli city of Hod Hasharon were damaged during the Iranian missile strike last night.

Israel’s public broadcaster reported on Wednesday that “about 100 homes in the city were damaged following last night’s ballistic missile attack from Iran. No human injuries were reported as a result of the attack.”

The municipality added that “some of the damage is severe and will take time to repair, while dozens of other homes were less severely affected,” according to Anadolu Agency.

Impact on Israeli Currency and Global Markets

The Iranian attack also had negative repercussions on global financial markets. The Israeli shekel dropped 1.4% against the U.S. dollar, falling to 3.77 shekels per dollar, according to the Hebrew site Calcalist.

Oil prices surged on Wednesday after the Iranian attack. Brent crude futures rose by more than a dollar to $74.56 a barrel, while U.S. West Texas Intermediate (WTI) crude climbed 88 cents, or 1.26%, to $70.71 a barrel.

U.S. and European stocks also plummeted sharply after the Iranian attack, causing a major shift in global markets. The main indexes on Wall Street fell, with the tech-heavy Nasdaq dropping by 1.5%.

Spot gold prices, meanwhile, dipped by 0.65% in early trading on Wednesday, following a strong rise in the wake of Iranian missile attacks on Israeli targets.