Children living in the vicinity of war and armed conflicts are considered to be among the highest-risk groups, as they face interrelated physical, intellectual, and psychological consequences. This review investigated the influence of the 12-day Israel-Iran conflict on the mental health status of children and highlights risk and protective factors that play a role in the degree of consequences. Recent studies reveal that children in conflict zones are at risk of post-traumatic stress disorder (PTSD), chronic or complex traumatic stress disorder (CTSD), anxiety due to the loss of parents, and trauma related to bombings, shootings, or exposure to violence conveyed through the media. Such experiences and memories tend to manifest in the form of chronic anxiety, nightmares, irritability, concentration problems, fears of the future, as well as issues related to academic performance. Physiologically, prolonged stress results in elevated cortisol levels, weakened immune responses, and increased chronic inflammation, rendering children more susceptible to illness. High-risk factors include violence exposure, lack of economic resources, family instability, and inadequate accommodation. On the other hand, factors like a stable family structure and functioning, a secure environment, psychosocial assistance, and education in coping skills can reduce the severe mental health impacts. Because the Iran–Israel conflict combines military strikes, economic pressure, and digital media exposure, its psychological effects on children are unusually complex. Addressing this crisis necessitates comprehensive, multi-faceted interventions, including routine psychological assessments, resilience-building initiatives, media literacy education, and integrated medical, nutritional, and psychosocial support. Ultimately, safeguarding children's mental health during wartime requires coordinated policy actions at both national and international levels.