Israel Declares Iran’s Central Bank a Terror Organization in Escalating Regional Stand-Off…In a dramatic escalation of its campaign to weaken Iran’s financial support for regional militant groups, Israel has officially designated the Central Bank of Iran as a terror organization.
The announcement was made on Tuesday by Israeli Defence Minister Yoav Gallant, who signed the designation order that also includes two additional Iranian banks, a military-linked energy company, and three senior Iranian officials.
This move marks the first time in Israel’s history that it has declared a foreign central bank a terrorist entity.
The decision, which Israeli officials describe as a direct strike on the financial heart of Iran’s regional operations, is part of a wider strategy to choke off the flow of funds to groups such as Hezbollah, Hamas, and Islamic Jihad.
According to Gallant, the Iranian regime has consistently used its official banking channels to transfer hundreds of millions of dollars to organizations that have carried out attacks against Israel and its allies.
He called the move a “decisive step” in disrupting Tehran’s ability to fund what he termed “a global terror network.”
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The designation allows Israel to freeze assets, block any financial transactions involving the targeted institutions, and pursue international cooperation for further sanctions.
It follows recent military actions that targeted what the Israeli military described as key figures in Iran’s terror financing architecture.
Among those reported killed in Israeli operations were a currency exchange head in southern Lebanon believed to be linked to Hezbollah’s funding operations and a Quds Force commander operating inside Iran.
Israeli sources claim the attacks dealt a significant blow to the financial networks supporting Tehran’s proxy groups.
This latest development comes amid a tense regional climate, following a period of mutual airstrikes and drone attacks between Israel and Iranian-backed militias across Syria, Lebanon, Iraq, and even within Iranian territory.
Although a fragile ceasefire appears to be holding, Israeli officials have signaled that the financial war will continue regardless of any battlefield pause.
The designation has already stirred concern in international diplomatic circles.
While some Western governments have expressed understanding of Israel’s security concerns, others are worried that such unilateral measures could further inflame tensions in an already volatile Middle East.
Economic experts also warn that placing a central bank on a terror list sets a dangerous precedent and could complicate global financial systems that still engage with Iran under limited humanitarian exemptions.
Tehran has condemned the move as an act of economic warfare and a violation of international norms.
In response, senior Iranian lawmakers have called for the suspension of all cooperation with Western financial oversight bodies, including the Financial Action Task Force (FATF) and the International Atomic Energy Agency (IAEA).
There are also growing calls within Iran’s parliament to accelerate the country’s nuclear enrichment program as a retaliatory measure.
Iran’s foreign ministry has yet to issue a formal response, but insiders suggest that Tehran is likely to pursue counter-sanctions and may explore legal avenues in international courts.
Meanwhile, pro-Iranian groups in Lebanon and Iraq have already condemned the Israeli move, with Hezbollah warning that further financial attacks could provoke a renewed round of hostilities.
Analysts say Israel’s bold declaration signals a shift in how it intends to confront Iran—not only through traditional military means but by dismantling the economic and institutional pillars that sustain its regional influence.
While it remains uncertain whether other countries will follow Israel’s lead in sanctioning Iran’s central financial institutions, the move has undoubtedly raised the stakes in the ongoing confrontation between the two archrivals.
As both sides brace for what could become a prolonged economic and diplomatic conflict, the designation of Iran’s Central Bank as a terror organization underscores how the battle between Israel and Iran is expanding far beyond the battlefield—into banks, boardrooms, and international law.
