Iran temporarily suspended services at two of its largest state-owned financial institutions on Tuesday, Bank Melli and Bank Sepah, as authorities moved to protect the country’s financial stability amid the ongoing US-Israeli air campaign targeting the Iranian regime. The shutdown affected customer access nationwide, with many account holders reporting that their bank cards, mobile banking applications, and online services had suddenly stopped functioning.
According to multiple reports from customers across Iran, bank accounts appeared frozen early Tuesday morning. Individuals attempting to withdraw money or complete transactions said their cards were rejected at ATMs and point-of-sale machines. Mobile banking platforms linked to the banks also stopped operating, leaving many customers unable to access their funds or conduct financial transfers.
Inside several bank branches, the disruption extended to internal banking systems as well. Employees reportedly could not process transactions due to non-operational systems, which brought routine banking operations to a standstill. In addition, the official websites of both Bank Melli and Bank Sepah were inaccessible during the disruption. Iran’s Central Bank, which regulates both state-owned and private financial institutions in the country, rejected speculation that the outage was the result of a cyberattack. The denial came amid growing concerns on social media and within financial circles that Iran’s banking infrastructure might have been targeted digitally during the conflict.
Although Bank Sepah experienced cyberattacks last year, the latest suspension appears to be a precautionary step taken by Iranian authorities. Analysts believe the government may have temporarily restricted banking services to avoid a potential financial panic or a run on banks during the escalating regional tensions. Iranian state-affiliated news agency ISNA described the decision as a response to urgent national circumstances. According to the agency, the government opted to halt operations at the two major lenders in order to safeguard vital financial resources during a period of intense economic pressure and security threats.
“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,” ISNA reported. Officials indicated that the suspension should be viewed as a protective measure rather than a sign of systemic failure. The authorities have called on the public to remain patient as the government manages economic risks linked to the ongoing military confrontation and external pressure on the country’s economy.
Abdolnaser Hemmati, the governor of the Central Bank of Iran, addressed the situation by stating that the temporary restrictions were intended to protect the country’s financial infrastructure. He explained that the measures were introduced to ensure the optimal use of limited financial resources and to prevent further strain on the banking sector during a period of heightened uncertainty. “The importance of this decision for the country’s economic future goes beyond everyday transactions,” Hemmati said, adding that public support and patience would be necessary as the country navigates the current challenges.
The developments come at a time when Iran’s national currency, the rial, is already facing severe pressure. Earlier this year, the exchange rate on the open market fell dramatically, reaching roughly 1.5 million rials to the US dollar in January. The steep depreciation reflects the broader economic challenges facing Iran, including international sanctions, inflation, and geopolitical tensions. As the conflict continues and financial pressures mount, the stability of Iran’s banking sector remains a critical concern for policymakers, businesses, and citizens across the country.
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