Israel has designated Iran's Central Bank as a terrorist organisation, alleging that it facilitates terrorist activities. The Israeli government stated that no part of a regime involved in terrorism will be granted immunity. The designation is part of a broader campaign to dismantle Iran's economic network that Israel says sustains terrorism across the Middle East.
Israeli Defence Minister Israel Katz signed the order, which also blacklists two other Iranian banks – Shahr Bank and Mellat Bank – and an energy firm tied to the Islamic Revolutionary Guard Corps (IRGC). Three senior officials from the Sepehr Energy Jahan Company (SEJ) have also been personally sanctioned.
"Iran's Central Bank is not a financial institution – it is a conduit that funnels billions into murderous terrorism," said Katz, adding, "We will hit the places that hurt the Ayatollah regime the most."
The move, taken on the recommendation of the Mossad and the National Economic Warfare Headquarters, aims to "strike at the heart of the Iranian terror regime's financing system". According to Israeli intelligence, SEJ's revenues are directly used to fund IRGC operations and proxy militias such as Hezbollah, Hamas, the Houthis and Shiite militias in Iraq.
Iran executes three alleged Mossad spies
The designation follows a chilling development in Iran, where the government executed three men accused of working for Israel's Mossad intelligence agency. The judiciary's Mizan news agency said the individuals were convicted of espionage and smuggling equipment used in an assassination. While Mizan provided scant details, the move reflects Tehran's aggressive crackdown on alleged foreign agents. In a parallel development, up to 700 individuals have been arrested in Iran over suspected ties with Israel, according to state-affiliated Nournews.
Escalation despite ceasefire
The developments come days after a fragile US-brokered ceasefire took effect between Iran and Israel following 12 days of open warfare triggered by Israeli claims that Iran was close to developing nuclear weapons. Israel and the US had bombed Iranian nuclear facilities in Fordow, Natanz and Isfahan, drawing sharp regional and global reactions.
Though both sides accused each other of breaching the ceasefire, former US President Donald Trump, who helped mediate the truce, later confirmed it was holding. "Israel will not attack Iran," he said, adding that Israeli planes had turned back and extended a "friendly gesture" towards Tehran.
Axis of evil has no immunity
Declaring the new sanctions, Katz stressed that "no regime element involved in terrorism has immunity" and vowed to "expose, strike, and dry up the Iranian axis of evil wherever it operates."
The declaration marks the first time Israel has designated the Central Bank of a sovereign nation as a terror organisation.
What next?
The designation deepens Israel's strategy of targeting Iran's financial and strategic depth without direct military escalation, especially during a volatile truce. While Iran has yet to officially respond to the move, the sanctions could further strain efforts at diplomatic de-escalation in a region already on edge.
