Israel has formally designated Iran’s Central Bank, along with other financial institutions and officials, as terrorist organizations, in a move aimed at dismantling Tehran’s regional funding operations for armed groups.

Israeli Intelligence Drives New Sanctions

Defense Minister Israel Katz signed the designation order following a request from Israel’s intelligence services. The move includes the Central Bank of Iran, Shahr Bank, Mellat Bank, and Sepehr Energy Jahan—a firm owned by Iran’s Armed Forces General Staff—along with three senior Iranian officials.

According to the Israeli Defense Ministry, the targeted institutions form “the heart of the Iranian regime’s terror-financing system,” which it says channels resources through the Quds Force and Islamic Revolutionary Guard Corps (IRGC) to armed proxies across the Middle East.

Part of Broader Economic Pressure

While the United States had already placed sanctions on Iran’s central bank, Israel’s move adds another layer of legal and political pressure against Iran’s financial sector, particularly those entities accused of facilitating funding to Hezbollah, Hamas, and other regional actors aligned with Iranian strategic goals.

The Israeli government framed the designation as part of a broader effort to choke off financial pipelines supporting regional instability.