Two major Iranian banks suspend services amid US-Israeli war
Authorities described the suspended services at two major state-owned banks, Melli and Sepah, as a temporary measure to protect financial stability
Iran’s state-owned lenders Bank Melli and Bank Sepah, among the country’s most important financial institutions, suspended services on Tuesday, with customers reporting in the morning that their bank accounts had been frozen.
The Central Bank of Iran (CBI), the primary regulator and supervisor of all state-owned and private banks in the country, denied that the disruption was caused by a cyberattack. While Bank Sepah was targeted by cyberattacks last year, the latest shutdown appears to be a pre-emptive measure by Iranian authorities to prevent a collapse of the banking system amid the ongoing US-Israeli air campaign targeting the regime.
Customers across the country reported that bank cards and mobile banking applications were not working. In several branches, internal systems were also not functioning, preventing staff from carrying out transactions. The websites of both banks were also not accessible on Tuesday.
State-affiliated news agency ISNA said the “suspension of key banks was a response to the urgent need to protect vital resources”.
“In the country’s critical situation, where economic pressures and widespread threats have affected daily life and financial stability, the government has been forced to prioritise limited resources with care and urgency,” the outlet reported.
“The importance of this decision for the country’s economic future goes beyond everyday transactions; its clear message is the need for public support and patience in difficult circumstances,” said CBI governor Abdolnaser Hemmati.
He added that the restrictions were in place to “ensure the optimal use of limited resources and prevent additional pressure on the country’s financial system”.
The developments come as Iran’s currency, the rial, continues to plunge. In January, the exchange rate on the open market reached roughly 1.5 million rials to the US dollar, underscoring mounting pressure on the country’s strained economy.
(vib)
