Israel designates Iran's central bank as ‘terror organisation’; minister labels it as ‘conduit’ to fund terrorism

Israel-Iran conflict: Israel on Wednesday designated the central bank of Iran as a ‘terror organisation’ even as the two countries appeared to take hold of the ceasefire agreement with each other, a day after they signalled that the war had ended.

The Israeli defence minister said that the move was aimed at putting a halt to financing for Iran-backed militant groups.

Minister Israel Katz had “signed a special order designating Iran's central bank, two additional Iranian banks (and) an Iranian armed forces-affiliated company... as terror organisations”, a statement from his office noted.

“Part of Israel's broader campaign against Iran”, the move aimed “to target the heart of the Iranian regime's terror financing system, which funds, arms and directs terror throughout the Middle East,” it added.

In a post on X, Katz said that the central bank of Iran is a ‘conduit’ to funnel billions to terrorism.

“Iran's Central Bank is a conduit that funnels billions to murderous terrorism. We will hit the places that hurt the Ayatollah regime the most, which fund Hezbollah's terrorism, the Houthis, Shiite militias in Iraq, Hamas, and in Judea and Samaria through the Revolutionary Guards,” he said.

Israel-Iran ceasefire

Iran and Israel agreed to a ceasefire on Tuesday, 24 June, ending 12 days of tit-for-tat strikes between the longtime foes.

The two sides have been locked in a shadow war for decades, with Israel battling several Iran-backed groups in the region, including Hamas in the Gaza Strip since October 2023.

Israel had said its bombing campaign, which began on 13 June, was aimed at preventing Iran from acquiring a nuclear weapon, an ambition Tehran has consistently denied.

“We have concluded a significant phase, but the campaign against Iran is not over. We are entering a new phase based on the achievements of the current one,” the head of Israel's military, Eyal Zamir, said in a statement Tuesday.

The fragile ceasefire between Israel and Iran appeared to be holding on Wednesday after a rocky start, giving rise to cautious hope that it could lead to a long-term peace agreement even as Tehran insists it will not give up its nuclear program.

The ceasefire took hold on Tuesday, the 12th day of the war between Israel and Iran, with each side initially accusing the other of violating it until the missiles, drones and bombs finally stopped.

On Wednesday, U.S. President Donald Trump, who helped negotiate the ceasefire, told reporters at a NATO summit in the Netherlands that it was going “very well”.