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Israeli army purchases frozen as drones worth millions lost in Iran

June 30, 2025 at 11:51 am

Bezalel Smotrich, Israel’s finance minister, during an interview in Tel Aviv, Israel on 5 December, 2024 [Kobi Wolf/Bloomberg via Getty Images]

Israeli Finance Minister Bezalel Smotrich has suspended new military purchases amid concerns about a potential new round of fighting with Iran, following the loss of dozens of drones worth millions of dollars over Iranian territory.

According to Ynet, the Israeli Ministry of Finance is refusing to approve a 60-billion-shekel ($16.2 billion) increase requested by the Ministry of Defence to cover the costs of the recent conflict with Iran and the ongoing Operation Gideon’s Chariots in Gaza. Both operations were not part of the approved 2025 state budget.

The report noted that there is a serious dispute between the two ministries. The Finance Ministry has accused the Israeli army of “wasting mobilisation days” and is blocking funds needed to replenish military stocks and carry out emergency purchases. These include rocket launchers, which are nearly depleted, and hundreds of missiles mainly intended for Israeli forces in Gaza.

Israeli security sources told Ynet that “Finance Minister Bezalel Smotrich knew what the strike on Iran meant”, implying his decision to freeze funding was taken despite understanding the consequences.

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