Tensions between Israel and Iran deepened on Wednesday, June 25, 2025, after Israel officially designated the Central Bank of Iran as a terrorist organization—just 24 hours after a US-Qatar-brokered ceasefire ended nearly two weeks of escalating missile and drone attacks between the two countries.
Israeli Defense Minister Israel Katz announced the designation through a special directive signed early Wednesday. Alongside Iran’s central bank, two other Iranian financial institutions and a military-affiliated company were also blacklisted under Israel’s counter-terrorism laws.
“This action strikes at the core of Iran’s terror financing network, which has been bankrolling Hezbollah, Hamas, the Houthis, and other regional proxies fueling violence against Israel and its allies,” Katz stated. He further described the move as part of Israel’s “new and broader strategy” to choke off Tehran’s ability to finance militancy across the Middle East.
The timing of the designation has raised eyebrows globally. It comes immediately after both countries agreed to halt hostilities on June 24 following 12 days of cross-border attacks triggered by US airstrikes on Iranian nuclear infrastructure and Iran’s retaliatory strikes on Israeli cities, including a direct hit on Tel Aviv’s Ramat Aviv district that left at least 16 civilians injured.
Military analysts say the Israeli government’s latest move signals that the ceasefire does not reflect a de-escalation in the larger strategic confrontation between the two nations. Israel’s Chief of General Staff, Lt. Gen. Eyal Zamir, said Tuesday that the “campaign against Iran has entered a new phase,” warning that the military remains on high alert.
Iran has not officially responded to the designation, but experts predict Tehran will retaliate diplomatically or through its proxy networks in Lebanon, Iraq, or Yemen. Regional stakeholders, including Qatar and the United States, have urged both sides to maintain the ceasefire to avoid triggering a broader Middle East crisis.
International observers now await Iran’s next move as financial sanctions targeting the heart of its banking system begin to take effect in the coming days.
