War has once again started raging across the Middle East, and both human and monetary costs are already rising steadily. The new conflict between Iran and the combined forces of Israel and the United States is striking at a time when the citizenry of Israel and the surrounding regions are already suffering, and promises to deliver further burdens both economically and physically. Israel specifically is already struggling from a poverty crisis that’s endured for nearly half a decade, and the cost of war with Iran has the potential to both contribute to and expand those conditions. 

Due to declining salaries, skyrocketing costs of living, a housing crisis, and economic pressures lingering from the war in Gaza, poverty in Israel is running rampant. As much as 21% of the population is living beneath the poverty line, struggling with food and energy insecurity, failing healthcare, and falling salaries that cannot keep up with rising prices. One-quarter of Israeli children are poverty-stricken on average, with numbers as high as 48% for some specific population groups. As war takes its toll, it’s clear that these civilians need assistance if they’re to continue to survive and thrive.

The International Fellowship of Christians and Jews (IFCJ or The Fellowship) is an organization dedicated to providing exactly that kind of relief. IFCJ is an interfaith nonprofit organization founded in 1983 by Rabbi Yechiel Eckstein to build bridges between Christians and Jews around the world. Currently helmed by President and Global CEO Yael Eckstein, The Fellowship leverages donations and raises funds toward a variety of aid services for Jews around the world. Among those services are outreach and humanitarian aid efforts, including food, clothing, medical assistance, and other on-the-ground care; having raised over $4.4 billion since its founding, The Fellowship has been a frontrunner in alleviating the costs of war and hardship for Israeli citizens. 

“The Fellowship hears the cries of impoverished people and responds by filling their most fundamental needs, providing food, clothing, shelter, heating, and medicine, and home visits to fight the isolation of the lonely and homebound,” says IFCJ. 

The Preceding Situation

Israel’s economy at the outset of the recent conflict was already in a shaky state. Long-standing structural and institutional weaknesses paired with the cost of two years of conflict in Gaza have taken its toll on Israel; the Taub Center reported that the country’s deficit ceiling rose to 5.2% of GDP, the debt-to-GDP ratio increased 10% since 2024, and the amount of capital available to the average Israeli worker was roughly half of that seen in comparable European nations. The cost of living in Israel is higher than in any other nation in the OECD; compared to comparable nations, Israel’s consumer prices were 13% higher, healthcare costs were 40% higher, and housing was as much as 20% higher. 

The costs of the war in Gaza took their toll as well. As the nation called up its reservists for military service, the already struggling domestic labor market tightened, which further constricted private spending. The loss of Palestinian labor entering Israel for work led to reduced production in the construction sector, and the loss of tourism revenue due to the war was also significant. However, the up-front cost of military operations represented a devastating blow to Israel’s economy: the Bank of Israel estimates military expenditures from 2023-2025 could reach $55.6 billion USD—as much as 10% of Israel’s GDP. 

The Cost Of A New War

The new war with Iran represents another destructive hammer blow to Israel’s economy, and the people of the nation are going to bear the brunt of the fallout. At time of writing, the opening salvo of the war has already been fired; Operation “Rising Lion” has carried approximately 20 billion shekels ($6.5 billion USD) in direct military costs over the 12 days of fighting, which serves as a point of comparison for future escalations. CPA Ram Aminoach and Dr. Sasson Haddad, two former economic advisers to the IDF Chief of Staff, spoke to CTech about a potential projection. 

“Calculating costs is easy. The real problem is not the cost, it’s trying to guess what the war will look like,” Aminoach says. “If you tell me it will resemble the previous round, it will cost roughly the same. The question is not the price, but the direction the conflict takes.” 

The fluid nature of war and its escalations make proper predictions difficult, but these experts posed a broad range of potential costs ranging from a few billion shekels, to tens of billions. The difference is whether or not Israel attacks again at all, participates defensively, or is dragged into a prolonged war lasting months or years. If the United States and Israel commit to further combined offensives, which a number of political analysts deem likely, then the costs of the war will only continue to rise. Aminoach warns that even purely defensive actions and the costs of air defense could easily reach as many as 10 billion shekels if the war continues. 

The extent to which the civilian population can stomach the costs of war is another matter entirely. The state compensation fund, which is expected to currently have a balance of roughly 10.6 billion shekels as of the start of 2026, not enough to cushion a prolonged campaign. The expected depressions to GDP, consumption, investment, and economic confidence could last from months to years, as seen in the wake of the prior conflict.

How The Fellowship Saves Lives

As conflict threatens to once more upend the lives of Israeli citizens and Jews in the region, the International Fellowship of Christians and Jews is prepared to step in and provide lifesaving assistance. With over $303 million donated to The Fellowship annually in recent years — and 76 cents of every dollar going toward humanitarian aid—the organization and its donors around the world can gather to make a meaningful difference. Poverty relief and shelter programs are a major beneficiary of donations, specifically, which will surely prove valuable in the days to come. 

With war with Iran looming once more on the horizon, The Fellowship has already taken a number of emergency readiness measures.  IFCJ has installed mobile bomb shelters, including ‘Arvel’ shelters equipped with heavy steel doors to protect against missile impacts and shrapnel, and plans to purchase and deploy more in accordance with Home Front Command guidelines. Hospital Emergency Preparedness plans, including support for the Rambam Medical Center and Galilee Medical Center, have been put into place nationwide. 

Other material support has also been prepared. Food security and emergency distribution packages have been prepared, and dozens have already been delivered to elderly residents; a reserve of  food purchase cards has been made ready for immediate distribution through municipal welfare departments. Hundreds of rescue kits have been similarly provided, and bulletproof vests and helmets have been distributed to volunteers. Finally, Fellowship-donated transportation vehicles have been prepared to evacuate elderly and disabled residents if necessary. 

“In the face of a possible crisis, The Fellowship does not wait. We and our partners act immediately, keeping the security and essential needs of the Jewish people at the forefront,” said Yael Eckstein, President and Global CEO of The Fellowship. “This level of readiness would not be possible without our generous donors and partners… and we extend our deepest thanks,” she added.