The US-Israel/Iran cyber conflict is burning through approximately $9.93 billion daily, with estimated costs reaching $1.8 Trillion if the war continues for six months. The conflict involves significant cyber warfare elements, making it a hybrid war with both kinetic and cyber components. Although the war recently escalated, Israel and Iran had engaged in a 12-day war, involving cyber attacks and airstrikes, last June; a pre-conflict that escalated between January and February, 2026, saw an increased cyber operations.
A Joint US-Israeli Operation Epic Fury/Roar of the Lion launched an attack targeting Iranian military infrastructure on February 28, 2026. The conflict highlights the growing importance of cyber warfare in modern conflicts. Experts have warned that cyber operations will likely continue and escalate. Since the full-blown war started, both sides have launched cyber attacks, including DDoS, data leaks, and infrastructure disruptions.
The financial cost of funding the cyber war in the US-Israel-Iran conflict is substantial and escalating. While the United States is spending about $1.43 billion per day on the war, Israel’s daily spending is put around $4 billion. The spendings of Gulf States, including United Arab Emirates (UAE), Qatar, Kuwait, Saudi Arabia, and Bahrain are put at about $4.5 billion per day.
But Iran’s daily spending on the war isn’t explicitly stated in the available data. These costs are part of a broader economic impact, with the conflict affecting global IT spending, energy prices, and cybersecurity investments. Israel’s cyber campaign described as one of the largest in history, contributed to Iran’s near-total internet blackout. Iran, in retaliation lunched cyber attacks on US and Israeli targets, including Stryker Corporation breach.
But the US Cyber Command played a key role in disrupting Iranian communications and sensor networks. The US is spending approximately $1.43 billion per day, with total costs projected to reach $40 billion to $95 billion over two months, and $259 billion if the conflict lasts six months, depending on intensity and deployment of ground forces. For the first six days, costs were estimated at $11.3 billion, with an ongoing daily cost of $1 billion.
The Pentagon is presently seeking over $200 billion in additional funding from Congress to cover costs. Iran’s cyber warfare strategy involves using cheap drones and missiles to target costly US and Israeli defenses, with estimated costs of $1 million to $3 million per interceptor missile versus $10,000 to $50,000 per drone. The conflict has also disrupted global oil supplies, pushing prices over $100 a barrel and impacting economies worldwide.
The sum of $5.7 billion is spent on Air Defense Systems, $1.4 billion on Combat Losses, $27 million on Operations Costs, $1.2 billion on Tomahawk Missiles (over 300 deployed), and $5.5 billion on Offensive Strikes, daily. The conflict has exposed global defense shortages, driving a surge in military spending. Experts are of the opinion that increased spending on defense and cybersecurity can drive innovation and growth in these sectors.
Estimated costs associated with Iran’s cyber operations include: Interceptor costs, put at $1.2 billion to $3.7 billion for the first 100 hours of the conflict. THAAD interceptor is placed at $12.7 million each, Patriot PAC-3, at $3.7 million each, and Iranian Shahed-136 drone at the cost of $35,000 each. Iran’s cyber strategy involves using proxies and hacktivists to impose costs on its enemies, with a focus on psychological impact and resource exhaustion.
However, Iran has suffered significant economic losses due to infrastructure damage, sanctions, and disrupted oil exports, but exact daily costs aren’t available. Israel’s daily spending is estimated to be around $4 billion, with approximately $200 million per day, on Military operations, where missiles used to intercept Iranian rockets is costing between $700,000 and $4 million each.
Approximately 70 billion shekels ($22.3 billion) is spent on reserve forces alone. The country has spent 340 billion shekels ($108 billion) on munitions since the war began, with a significant portion used for purchasing arms from Israeli manufacturers.
The sum of 352 billion shekels ($112 billion) is estimated as overall economic toll of the war, including direct defense costs, property tax compensation, civilian outlays, and interest payments. The Gulf States including United Arab Emirates (UAE), Qatar, Kuwait, Saudi Arabia, and Bahrain are spending about $4.5 billion per day in the ongoing war.
The United Arab Emirates (UAE) is hardest hit by Iran’s retaliation, with over 3,000 projectiles fired at GCC countries, mostly targeting the UAE. Qatar intercepted missile attacks and reported new blasts, while Kuwait shot down an unmanned aircraft and intercepted hostile missile and drone attacks. In the same vein, Saudi Arabia intercepted missiles and drones, with the Ministry of Defense reporting the destruction of a drone in the Eastern Region, while Bahrain also reportedly intercepted missiles and drones.
