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Israel Threatens Full-Force Retaliation Against Iran Amid Crypto Sanctions

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Israel's Defense Minister Israel Katz has vowed to attack Iran 'with full force' if it launches missiles at the country, amidst ongoing tensions between the two nations. This threat comes after an Iranian missile interception and a series of repeated ballistic missile and drone attacks launched by Tehran toward Israeli targets throughout 2026.

On July 1, 2026, Katz signed sanctions targeting 37 crypto wallets linked to Iran's Islamic Revolutionary Guard Corps, valued at over NIS 24 million (approximately $6.5 million). The move aims to pressure exchanges and compliance teams worldwide into implementing stricter screening for IRGC-linked transactions.

The Israeli Defense Ministry is warning that facilitating these transactions carries consequences, potentially reducing liquidity for certain trading pairs or corridors. This mirrors the pattern observed during previous conflicts, where Bitcoin's price has historically declined in response to rising tensions before recovering as news of losses inflicted on Iranian leadership emerges.

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