According to the Israeli government, the Central Bank of Iran plays a "direct and strategic role" in financing terrorism through its alleged links to groups such as Hezbollah, Hamas, and Islamic Jihad. Israeli authorities claim that the bank channels funds to these organizations under the guise of state transactions and foreign aid, thus making it a central player in Iran’s support for proxy militias across the Middle East.
By labeling the bank as a terror entity, Israel is signaling a potential widening of its financial warfare tactics. This designation could lead to stricter international sanctions, tighter financial surveillance, and restrictions on global entities that do business with Iran’s banking system.
Iran has yet to issue an official response, but analysts believe the move will deepen diplomatic rifts and could provoke retaliatory measures. The designation also places pressure on international financial institutions to sever ties with Iranian banking networks or risk being blacklisted by Israeli and allied enforcement agencies.